Saban Takes the Reins at ProSiebenSat.1

It took him a while, but Haim Saban is finally where he wants to be: in prime position to tap into the German and European media markets.

With the purchase of ProSiebenSat.1, a process that has been ongoing for more than five months, Saban immediately controls half of the private television market in Germany. He also becomes the first official heir to the empire of German media giant Leo Kirch, who stood by helplessly as his media empire - to which Prosieben belonged - slowly began to crumble a year and a half ago.

The purchase by the Egyptian-born, U.S.-made multimillionaire marks the beginning of a new era in German television. The long protective market will now experience measured influence from foreign investors via Saban.

"We're very pleased that our offer has won the support of the creditor committee," Saban said in a statement. "We look forward to completing the transaction."

His purchase of the embattled broadcaster, which has suffered under the uncertainties of the Kirch bankruptcy, is already being seen as a necessary boost in troubled times for the market. But it won't likely be reflected when Prosieben CEO Urs Rohner releases the figures for the first half of the year this Thursday.

Backed by private equity firms, Saban's offer of €7.50 ($8.50) per share for the 72 percent of unlisted but vote-wielding ordinary stock was accepted just two months after his first attempt failed. The deal values ProSieben at €1.3 billion.

But his takeover almost floundered for a second time when private equity firm Apax Partners filed an 11th-hour bid worth €8 per ordinary share on Tuesday just before the creditors' meeting started. The attempted hijacking of the deal fell through when Apax's partner, the Carlyle Group, dropped out leaving the road clear for Saban.

"The vote (for Saban's bid) was unanimous," said a spokesman for KirchMedia.

Kirch's crown jewel

The creditors in charge of the bankrupt company's crown jewel have been trying to sell ProSiebenSat.1 for over a year. During that time, they attempted to offload the group a number of times in a bid to recover some of the billions of euros they had lent Leo Kirch, turning the on-going saga surrounding the bidding war into a turbulent auction.

German publisher Heinrich Bauer was the first to show an interest after teaming up with German bank HVB Group and a deal was struck for ProSieben eight months ago. But Saban had other ideas and Bauer was elbowed aside, leaving the American to sign a deal in March. However, that attempt failed in June after Saban had problems with financing. His determination to get into the German market, however, never waivered.

"I would have tried (to buy ProSieben) ten times if I had failed nine times," Saban said according to the German news agency DPA.

A Kirch spokesman said the deal is expected to be signed in the next few days. Once the deal is closed, Saban is set to also make a public offer to buy ProSieben's listed preference shares for a price around the minimum legally possible, which stands at €5.60-5.65. His title of number one challenger to the German and European media crowns will then be officially recognized.