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ProSiebenSat.1 sells venture capital portfolio to Lexington


Reuters

FRANKFURT, June 28 (Reuters) - German media group
ProSiebenSat.1 <PSMGn.DE> has sold its media-for-equity
investment portfolio to U.S. private equity firm Lexington
Partners for around 50 million euros ($57 million).
    ProSiebenSat.1's media-for-equity portfolio was created in
2009 and operates as a venture capital firm. It gives
advertising space on its television channels and digital
platforms to start-up firms in return for a stake in equity or
future revenue streams.
    "Sales proceeds amount to a mid-double-digit million euro
figure," ProSieben said in a statement on Wednesday.,
    As part of the deal, ProSieben's venture capital arm
SevenVentures will bring in up to 16 minority participations in
a new joint venture called Crosslantic Capital.
    SevenVetures will remain involved as a strategic partner
with a minority stake of around 24.5 percent in Crosslantic.
    ProSieben's most successful use of the media-for-equity
business model was Zalando <ZALG.DE>, which is now listed at the
Frankfurt stock exchange and has a market value of almost 10
billion euros.
    ProSieben said in a statement that since its incubation the
portfolio has doubled in value and generated an internal rate of
return (IRR) of around 30 percent.
($1 = 0.8804 euros)

 (Reporting by Harro ten Wolde; Editing by Georgina Prodhan)
 ((harro.tenwolde@thomsonreuters.com; +49 69 7565 1271; Reuters
Messaging: harro.tenwolde.thomsonreuters.com@reuters.net))

Keywords: PROSIEBEN MEDIA M&A/



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