Power of Berlusconi exceeds 8 euros; next milestone: reaching 52-week high on ProSiebenSat1

ProSiebenSat.1's stock reclaimed the 8 Euro mark on Thursday, following the news of Media for Europe (MFE) acquiring a majority stake in the German media company. This takeover, controlled by the Berlusconi family, marks a significant shift in the European broadcasting landscape.

MFE, with its base in Italy, has acquired 75.61% of ProSiebenSat.1's voting rights, including the 15.7% stake held by the Czech investor PPF. This move makes MFE the main institution involved in developing a pan-European broadcasting and streaming platform. The initiative primarily focuses on Germany, Italy, and Austria, with the aim of building a large European media group to compete with US streaming giants like Netflix and Amazon Prime Video.

The takeover is being closely watched politically, with Media State Minister Wolfram Weimer emphasizing the importance of editorial independence. MFE's goal is to create a pan-European broadcasting network that can compete with these streaming giants, focusing on German-speaking markets and expanding internationally.

However, ProSiebenSat.1 is currently struggling with declining advertising revenues, high investments in streaming, and a significant debt burden. The weakening advertising market and strong competition from international streaming services are ongoing challenges for the company.

The millions in synergies that MFE is promising are considered ambitious by experts. A stronger focus on the German audience with news, entertainment, and in-house productions sounds promising, but whether this will be successful remains to be seen.

The market responded swiftly to the news, with ProSiebenSieben's stock price rising significantly and closing above the 8 Euro mark. The stock market is betting on the Italian majority and the vision of a European media network. If the resistance level of 8.53 Euro is broken, the path to 8.80 to 9.00 Euro could be clear for ProSiebenSat.1's stock price.

It's worth noting that the CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives. This potential price development could benefit from the CEO's direct and indirect positions.

Despite the optimism, ProSiebenSat.1 is not currently a recommendation from DER AKTIONÄR. The stock is likely to be stabilized for the time being, but whether the new constellation will bring sustainable success remains to be seen. The takeover by MFE gives ProSiebenSat.1 a short-term boost, but the structural challenges remain in the medium to long term.

The next chart target for ProSiebenSat.1's stock price is the 52-week high of 8.53 Euro. The success of this venture will depend on MFE's ability to navigate the challenges and capitalize on the opportunities in the evolving European media landscape.