discop link • #11

newsBENEATH THE RADARBy Bob JenkinsUkraine's growing importance hasbeen underlined by two recentdeals. In the first of them Ukrainianentrepreneur Igor Kolomoisky took a€76 million stake in Central EuropeanMedia Enterprises (CME) representingapproximately 3% of CME's outstandingcommon stock. Mr Kolomoiskyalso took a seat on CME'sboard of directors. Mr Kolomoisky is aprominent businessman in the Ukraine,being a controlling shareholderand supervisory board member ofPrivatBank, one of the country'slargest commercial banks, and amajor shareholder and member of thesupervisory board of Ukrnafta, Ukraine'slargest oil and natural gas company.The country's growing importancewas further underlined byMichael Garin, CME's CEO who welcomedMr Kolomoisky's investment bycommenting, "this investment by MrKolomoisky should confirm CME's viewthat Ukraine will be a powerful growthengine for the future."The second deal underscoring therapid growth currently being experiencedby the Ukrainian content businesswas the acquisition of a 75%stake in YS Films, by Sweden's ZodiakGroup. YS Films is currently the secondlargest Ukrainian production company.Routed through Zodiac's Russiansubsidiary, Dixi Media the acquisitionis seen by the Swedish group asan important step in its plans forexpansion into former Soviet states.Zodiak currently owns 100% of ZodiakVostok, which in turn owns 51% ofTeleAlliance, with the brands Tele-Format and TeleRoman, and DixiMedia with the brands Dixi and Rytm.Commenting on the acquisition ofa stake in YS films, Zodiak presidentand CEO, Patrick Svensk said, "myexpectation is that YS Films growthwill be similar to the very positivedevelopment our Russian subsidiariesare currently enjoying, and I am convincedthat Ukrainian growth will bevery strong over the next couple ofyears."DISCOP.Link takes a look at some of the key eventsthat have happened recently in the region.In a move that will raise eyebrows insome quarters billionaire Georgianbusinessman Badri Patarkatsishvilihas turned to Rupert Murdoch to protectthe editorial independence ofImedi, Georgia's largest privatelyowned broadcaster. Mr Patarkatsishvili,who is currently financing theopposition to President Mikheil Saakashvili,said of Mr Murdoch, whoseNews Corp has owned a 49% stake inImedi for over a year now, "I haveknown Rupert Murdoch for manyyears. I trust him. He is a man of hisword and he will try his best to keepthe channel independent." NewsCorp, which is known to have plans toexpand into Europe's emerging marketswill increase its stake to 51% andtake temporary control of the remaining49%. Marty Pomadur, executivevice-president News Corp, and chairmanof News Corp Europe commented,"this is not a political move as faras we are concerned."Yet more merger and acquisitionactivity, this time between Polandand The Czech Republic with Polishmobile content company One-2-Oneannouncing the completion of theacquisition of its Czech counterpartATS for €3 million in cash. One-2-One,which lists MCI Management S.A.(29.69%) and Tomasz Dlugiewicz(19.57%) as its two main shareholderssays that it plans to greatly expandATS' activities in both The CzechRepublic and Slovakia with a closefocus on the convergence betweenmobile and the Internet.Also planning an expansion of itsactivities is L.A. based RiveGauche. The company recently announcedthe completion of a multi milliondollar capital increase from privateinvestment fund Cedar Lane. RiveGauche chairman Jon Kramer promisedthe new funding would be allocatedtowards corporate expansion,increasing the company's acquisition,development and co-production activities.As part of the planned expansionthe company has re-organised intothree distinct groups all operatingunder the Rive Gauche Entertainmentbanner. Rive Gauche Television will bededicated to production and distributionof original television programming;Rive Gauche Motors & More willsupply quality men's lifestyle programming,while Rive Gauche Films willassume responsibility for the distributionof the company's film library ofclose to one hundred films.The expansion also sees theappointment of two senior salesexecutives; Gary MacKinney joins asvice-president international sales andRobby Amar as international salesexecutive. Both report to DorothyCrompton, senior vice-president internationalsales and administration.There are new appointments too atthe emerging markets division ofMTV International. Alex Chien joins ashead of Nickelodeon Emerging Marketswith responsibility for managingNickelodeon's existing portfolio ofchannels in the region as well as furtherexpanding the Nickelodeon brandpresence and developing the brand asa multi-platform kids' entertainmentbrand. Chien will report directly to thedivision's managing director and seniorvice-president Bhavneet Singh.Two others join the department,Erinn Thompson joins in the newlycreated role of Program and AcquisitionManager with responsibility for allacquisitions and scheduling in the region,Lisa Wakefield joins as marketingexecutive with responsibility for allmarketing activity across the region.Both are based in London and reportdirectly to Chien. }52 DISCOP LINK • #11 • NOVEMBER 07