RTL Group has decided to exit the Greek market because of the country’s ailing economy.
Europe’s largest TV, radio, and production company has seen its advertising revenues shrink by more than 50% in the past three years, and will now sell its almost 70% stake in Alpha Media Group back to entrepreneur Dimitris Kontominas.
“Given the heavy and ongoing economic and financial crisis in Greece, we have eventually decided to exit the Greek market,” RTL Group Chief Executive Gerhard Zeiler said in the statement on Thursday, according to Reuters.
The financial terms of the new deal, subject to approval by the Greek Competition Commission but expected to be concluded in the first quarter of the year, were not disclosed.
Kontominas said, “Alpha has significantly improved its market position over the past three years. I regret that RTL Group is leaving the Greek market, especially given the achieved development.”
RTL will preserve some of its activities in Greece through its FreemantleMedia affiliate.
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