In order to get German consumers to pay more to shop online and use e-mail as well as phone service and extra cable channels, Liberty Media Corp. and Klesch & Co. will buy 55% of six Deutsche Telekom AG cable-television businesses, with a two-year option to buy another 20%, according to wire reports.
Terms were not disclosed, but the purchase would give Liberty and Klesch access to 10 million cable subscribers in Germany, about half of the total number in the country. Germany has the largest number of cable subscribers and the lowest rates in Europe.
The Deutsche Telekom acquisition along with an increased stake in UnitedGlobalCom make Liberty Europe’s largest cable company. AT&T Corp. owns Liberty, while UnitedGlobalCom controls United Pan-Europe Communications NV.
Deutsche Telekom has been selling off regional units in an effort to address the unfair competition concerns of the European Union.