Telia Company has completed the sale of its TV and media business to Schibsted for 6.55 billion Swedish Kronor, a deal aimed at creating a Nordic media powerhouse better equipped to compete with U.S. technology giants.
The transaction, first announced in February, transfers ownership of major broadcasters TV4 in Sweden and MTV in Finland to Oslo-based Schibsted, which owns news brands such as Aftonbladet in Sweden and VG in Norway.
Schibsted said the acquisition is a strategic move to build scale and investment capacity in the face of intensifying competition.
"As competition with global tech giants intensifies, building complete and nationally rooted media positions with scale and investment capacity is more important than ever to safeguard editorial independence," Schibsted Media CEO Siv Juvik Tveitnes said when the deal was announced.
For Telia, the divestment is part of a strategy to simplify its operations and focus on its core telecommunications business.
"This is our latest milestone in creating a simpler Telia," President and CEO Patrik Hofbauer said in a statement.
The company said it will use the proceeds to reduce debt and that its net debt to adjusted core earnings ratio is now in the lower end of its target range.
Telia will continue to carry TV4 and MTV content for its customers through a multi-year distribution partnership, the company said.
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