Telenor ASA and Nordic Entertainment Group AB are forming a new broadcasting company by combining their units Canal Digital and Viasat Consumer.
Telenor and NENT will each own a 50% share in the joint venture, which will focus on satellite distributed pay TV and streaming services, as well as IPTV on open fiber networks. The to-be-formed company will also develop TV distribution services.
The new entity will be headquartered in both Oslo, Norway, and Stockholm, Sweden, and will have a substantial presence in Copenhagen, Denmark.
Canal Digital and Telenor Broadcast Holding AS CEO Bjørn Ivar Moen will head the new company, while Viasat Consumer CEO Jonas Gustafsson will become CFO and head of operations. The joint venture's board will have an equal representation from Telenor and NENT, with a rotating chairmanship.
The merger is anticipated to bring about an estimated 830 million Norwegian kroner in integration and other related costs. Meanwhile, peak annual cost synergies of about 600 million kroner is expected to be generated from the combination, with full effect from 2022.
The transaction is subject to regulatory approval and is expected to be completed during the first half of 2020.
As of Oct. 21, US$1 is equivalent to 9.14 Norwegian kroner.