The planned control of the most watched commercial television Nova by the group of the richest Czech Petr Kellner is not a completely new news, but it has now been definitively confirmed. The European Commission has just decided that PPF can take over from US & AT&T its stake in Central European Media Enterprises (CME). And this is definitely the way for Kellner to join Nova.
Together with the end of the regional elections and the advancing coronavirus pandemic, this is undoubtedly one of the most important news of the year. This is not just a business event: as PPF wins Nova before the parliamentary elections next autumn, it will be interesting to see if it resists the temptation to influence them through an influential medium. As well as long-term events in the Czech Republic – for example due to their other business interests.
Nova is undoubtedly the most financially successful television in the entire Central European region. It holds about a third of the Czech television audience, but due to the ban on advertising on Czech Television, it withdraws about 60 percent of all domestic expenditures on television advertising. Audience percentages are no longer as high as they used to be, as the range of channels is getting wider, but sales are constantly rising.
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PPF will pay almost fifty billion crowns for Nova, but the high price makes economic sense. Firstly, because some television channels can be resold, and secondly, because CME televisions can work well in combination with the telephone operators that Kellner already has in the Czech Republic. The interconnection of telecommunications and media is a trend that is already taking place in the world. The telecommunications company provides customers with an Internet connection and can also offer television content.
But all this can be just a pleasant bonus for PPF to be able to speak to what is happening in the Czech Republic. “Such an important purchase would mean for PPF – whether it wants to or not – gaining possible political influence and thus indirect participation in political competition,” said Martina Vojtěchovská, editor-in-chief of the MediaGuru server, some time ago to Respekt reporting on events on the local media scene. According to her, the logic is that “a medium that has the ability to reach millions of people every day can be a tool for influencing public opinion.” It only depends on how willing someone is to use it – and how much the state is able to guard something like this through media councils.
The ability to get along with politicians and make money on it undoubtedly belongs to the age-old equipment of PPF. Whether it was the wild beginnings of capitalism in the 1990s, when Kellner, with the help of former ODS finance minister Ivan Kočárník, took control of the state-owned Česká pojišťovna, or in recent years a sudden awakening of President Miloš Zeman’s warm relationship with China.
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Coupon privatization played a decisive role in the start-up of PPF, the inventor of which, Václav Klaus, in turn owes PPF the money for the start-up of its current institute. With Nova in the back, Kellner is now gaining more influence over parliament and lawmaking. In a situation where the success of business is decided in many respects by state regulation, the control of Nova is at least a strategic step.
The trade of the year in the Czech Republic was recently criticized by some US senators. “Media ownership requires public trust. And PPF has proven that it is not worth it. PPF cannot claim to add nuances or balance to the public debate by silencing critical voices, as it sought to achieve a controversial, long-canceled agreement with Charles University. ” told US Respect Sen. Marco Rubio. Part of the contract was that for sponsorship, both parties “undertake to refrain” from anything that could damage (their) reputation and reputation “or” negatively affect their cooperation “.
As Rubio added, Petr Kellner’s company undermines US national security interests related to Central and Eastern Europe as well as China. PPF does business in China, its Home Credit offers consumer loans there. There is a public debate in the Czech Republic about the extent to which PPF is influencing Czech foreign policy towards Beijing because it is economically dependent on the Chinese regime. Part of the discussion is the question of whether the purchase of Nova will not increase China’s influence in Europe. PPF rejects the above reservations as unfounded.
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