RTL Group to acquire Sky Deutschland, creating media giant with 11.5 million subscribers

German media giant RTL Group agreed to buy Comcast’s (NASDAQ:CMCSA) Sky Deutschland for an upfront price of €150 million ($176 million).

The purchase gives RTL, which is majority-owned by German media group Bertelsmann, local access to Sky’s premium sports rights, including Bundesliga and Premier League soccer, and Formula 1 motor racing, as well as Sky’s WOW streaming service.

The transaction represents the TV provider’s biggest-ever deal as it looks for ways to add new revenue streams.

“It will boost our streaming business … further diversify our revenue streams and make us even more attractive for creative talent, rights holders and business partners,” RTL Chief Executive Thomas Rabe said in a statement.

The deal involves a €150 million ($176 million) upfront payment by RTL plus a variable component of up to €377 million – provided RTL’s share price exceeds €41.

Sky parent Comcast (NASDAQ:CMCSA) can trigger the variable consideration of the deal at any time within the next five years.

RTL said €250 million in expected annual synergies within three years after closing.

The transaction, which has been approved by the board of directors of RTL Group, is subject to regulatory approvals.