The German competition authority on Tuesday approved the takeover of Swedish digital magazine service Readly involving Swedish media group Bonnier and France’s Cafeyn Group.
Bonnier is to purchase all the shares in Stockholm-based Readly International, before passing the international unit to Cafeyn. The German authority had previously approved this aspect of the deal.
Readly is a digital service provider in newspapers and magazines, operating a business model similar to that of Spotify and Netflix. The app, which is available on smartphones and tablets, provides access to thousands of magazines and newspapers for around $13 per month.
Andreas Mundt, head of the German competition authority, noted that flat-rate business models had proved themselves in music and video streaming. “For the press and magazines, digital marketing continues to be in flux,” he said.
The authority had investigated Readly’s strong market position in Germany and decided to approve the takeover, he said, noting that Cafeyn did not yet have a presence in Germany in this sector.
Bonnier’s offer, made in December, values the company at around $46 million.