Telia buys Bonnier unit for $1 billion

stockholm — Sweden’s Telia Company announced a $1 billion deal to buy Bonnier Broadcasting on Friday, its second major acquisition in a week, as the top Nordic telecoms operator looks to expand its media business.

Bonnier Broadcasting, owned by a prominent Swedish family, includes brands such as Swedish TV4 and streaming service C More and Finnish MTV. Telia is focused on supplying a full range of mobile, fixed-line and TV operations in its seven Nordic and Baltic markets after retreating from central Asia, a previous source of growth.

Telia on Tuesday announced the acquisition of TDC’s Norwegian business in a $2.6 billion deal and had previously confirmed it was in talks with Bonnier to buy the business. Scandinavian telecoms companies are doing deals to help them stand up to big internet players offering streaming services.

The Bonnier deal is however politically-sensitive ahead of elections due in September since the Swedish government is Telia’s biggest owner with 37 per cent of shares. The state already controls Sweden’s other big traditional broadcaster, public service television network SVT.

“As a citizen I think it is strange that the state can control both public service and, if the deal goes through, the biggest commercial TV channel,” said Georgi Ganev, CEO at Kinnevik, owner of several Nordic telecom and media firms.

Telia said it would take its role “most seriously” and continue to handle it responsibly. The government said it was to meet the board later on Friday to discuss the issue, according to news agency