ProSiebenSat. 1 sold to KKR.

After an unsuccessful 40 billion euro bid for Vivendi, U.S. private equity group Kohlberg Kravis Roberts (KKR), along with Permira (the European equity firm formerly known as Schroder Ventures Europe), are taking control of Germany's ProSiebenSat1 Media. The consortium is said to be shelling out 3.1 billion euro, or 28.50 euro per share, for 50.5 percent of the company held by U.S.-Israeli investor Haim Saban and a host of other U.S. investors. Saban's consortium had paid 7.50 euro per share when they acquired the stake from the bankrupt Kirch Media Group in 2003.

Last year KKR and Permira acquired Luxembourg-based broadcaster SBS for 2.1 billion euro.

KKR and Permira are now expected to buy out the remaining 49.5 percent of the ProSiebenSatl shares for some 2.5 billion euro in order to merge the group's four free-TV channels broadcasting to Germany, Austria and Switzerland with the 12 channels run by SBS that span the Benelux region, Scandinavia and Eastern Europe.

Overall, the combined media groups will reach 84 million households (TVHH) in 11 countries.

With combined annual revenues of about 2.9 billion euro, ProSieben/SBS would close the gap on Germany's market leader, the Bertelsmann-owned RTL, which boasts sales of 5.1 billion euro and reaches 172 million TVHH.