MTS consolidates 100% of the company “stream”

Moscow. December 25. PJSC “Mobile TeleSystems” (MTS) in the near future will buy 55% of the company “stream” sister company “System of Mass Media” (SMM), said two sources close to the parties to the transaction.

MTS currently owns 45% of the “stream”. If the deal with SMM will take place, the operator consolidates the LLC.

The consolidation of this asset potentially interesting MTS, confirmed the statement.

According to one of interlocutors of Agency, MTS is also considering the acquisition of SMM minority stake in the LLC “Digital broadcasting”. Sources do not disclose the names of the parameters of both transactions, including their cost.

Currently the “stream” and MTS are working on creating a music service that knows the source.

The parties have recently launched a service “MTS Book” together with the seller of licensed electronic books “Litres”. “Stream” is the owner or licence of video and audio content, delivers it services to MTS, the operator provides the service “Beep”. More than two years stream also delivers MTS mobile advertising.

“Business “stream” is inextricably linked to the MTS and in the current business model we see a possible synergy between “stream” and MTS”, – said the representative of the operator.

Stream previously ran the portal but for more than a year the portal, on the home page posted the offer to use the service MTS TV. The portal is in the process of refining, was reported in “the Stream”.

Portal for licensed video, audio and game content previously called and was on balance of MTS. In 2012, the controlling shareholder of MTS, AFK “System” unites it with the portal created by MTS in 2009. For this it was created the LLC “stream”, in the capital of which AFC has made 496,1 million roubles, having received a share of 55%. Operational management of the company “stream” in this case was instructed “daughter” of “System” – hmm.

Three years ago, Sistema and MTS planned to do from the “stream” of “leader in the Russian market of media content and increase its shareholder value”.