Sweden-based Viaplay Group announced on July 17, that it has acquired the remaining 50% stake in Allente Group from Norway’s Telenor.

The deal is worth 1.1 billion Swedish crowns (US$113 million).

This acquisition makes Viaplay the sole owner of Allente, which provides broadband and satellite television services.

The purchase will be funded through available cash and a new loan facility totaling 1.73 billion crowns (US$177.3 million).

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Strategic retreat from global ambitions to Nordic stronghold

Viaplay’s full acquisition of Allente represents a significant strategic pivot for the company after a tumultuous period of failed international expansion.

In 2023, Viaplay reported an operating loss of SEK 1.1 billion despite 7% revenue growth in the Nordics, revealing the financial strain from its international ventures 1.

The company has since exited several markets, including the US and UK, shortly after launching services there, scaling back from ambitious expansion plans that targeted 12 million subscribers by 2025 2.

This acquisition consolidates Viaplay’s position in its core Nordic markets, where Allente serves approximately 840,000 subscribers with annual revenues of SEK 6.5 billion, providing a stable foundation after international setbacks 3.

The deal follows a substantial corporate restructuring that included a 25% workforce reduction and cutting original content production from 50 to 10 titles annually, signaling a shift from growth to profitability 24.

2️⃣ Consolidation amid streaming market maturation

The Nordic media landscape is experiencing consolidation as local players adapt to compete against global streaming giants.

Allente itself was formed in 2020 through the merger of Canal Digital and Viasat, creating a stronger regional player in satellite and broadband television distribution 53.

This latest transaction values Allente at SEK 3.1 billion total enterprise value, indicating significant market value for established distribution channels despite streaming’s growth 6.