The future of Sky Germany hangs in the balance. But the company could change hands as early as the end of 2022.
Rumors have been circulating for months that Comcast – which also owns Sky UK, Ireland and Italia – is planning to divest its Sky Deutschland subsidiary. So far, only United Internet, which also owns 1&1 Drillisch, has been in talks as a serious prospect. A decision is expected by the end of this year.
Sky Germany not profitable enough
Unlike Sky divisions in other countries, such as Sky Ireland and Sky UK, Sky Germany is not active in the telephone and internet business. Industry analyst Godard says the company is “too small compared to its UK sister company”. Bloomberg reported. The analyst suggests that a German buyer could merge Sky Deutschland with another company to bring it to a competitive size.
Sky Deutschland is struggling to operate a lucrative business amid growing competition in the streaming market. Attempts to penetrate the hardware market have so far failed. The company took the Sky-Box off the market again in 2020 after just two years. Sky Glass, a smart TV that has been on sale in the UK since the end of 2021, has not yet been released in Germany.
Sale of Sky Germany in 2022?
The specialist magazine “DWDL.de” reports that so far only Internet service provider United Internet, based in Montabaur, has had a serious interest in taking over Sky Germany from Comcast. Negotiations are said to be well advanced and should be completed this year. United Internet would have the option of merging Sky Deutschland with 1&1 and thus offering a complete package of Internet, mobile communications and television. Exactly what Sky Germany has been missing so far.
However, it is unclear how the separation of the German branch from the Sky group could proceed. After all, Sky Deutschland was heavily dependent on the capacities of its sister companies due to staff cutbacks. It is possible, for example, to license the brand name for a restructured or completely separate offer. On the other hand, Sky Germany already has a not inconsiderable number of users who could move to a new service. The question also remains as to what will happen to the transmission rights. So far, the Sky Group has had a size advantage here, as it acquires the licenses for sports, series and films for all divisions.
source
DWDL.de: Sale of Sky Germany is nearing completion (accessed December 13, 2022)