Russia’s National Media Group has signed a deal with Viasat World – the new brand for the international pay-television channels arm of Modern Times Group – to form a joint venture to distribute Viasat’s channels in the country.
Under the agreement, NMG will hold an 80 per cent stake in the joint venture, complying with Russia’s media regulations. The venture will control all of Viasat’s 15 channels in Russia, which include sports platforms such as Viasat Golf HD.
The joint venture will be led by Alexei Krol, chief executive of Viasat Channels Russia. Olga Paskina, chief executive of National Media Group, said the agreement marks a logical development of the company’s pay-television strategy, which has a focus on factual, sports and youth content.
In October, multi-territory commercial and pay-television broadcaster MTG sold its Russian and international pay-television channel businesses as it sought to comply with new media regulations being introduced in the country.
Sabiero Holdings Limited, a wholly-owned subsidiary of private equity firm Baring Vostok, acquired MTG’s international channels business, and Russian company LLC Sinerdzhi acquired the Russian channels business.
Russia’s new Mass Media Law came into force on January 1 and prohibits international firms from holding a stake of more than 20 per cent in Russian mass media businesses. MTG sold its stake in Russian pay-television operator CTC Media to commercial broadcasting group UTH Russia in September.