Television group Central European Media Enterprises (CME) has agreed to buy the entertainment business from Romanian firms controlled by CME President Adrian Sarbu, the company said on Tuesday.
CME said it would buy media production and distribution business MediaPro Entertainment from MediaPro Management and Media Pro BV for $10 million in cash and 2.2 million CME shares.
"CME intends to integrate its existing fiction, reality and entertainment television production units with MediaPro Entertainment to create a dedicated content division consisting of production, services and distribution operations across all of CME's territories," the company said in a statement.
MediaPro Mangement and MediaPro BV will also get the right to buy up to 850,000 CME shares at $21.75 per share, and CME will take over $35.6 million in debt.
CME operates television stations in seven central and east European countries, including Romania and the Czech Republic.
MediaPro Entertainment produces and distributes television fiction programming and owns one of the largest studios in central and eastern Europe, CME said.