Modern Times Media Group (MGT) has acquired a 50% stake in TV Prima, the second commercial TV station in the Czech Republic, for USD 116m (CZK 2.9bn). TV Prima’s FY04 sales reached CZK 1.5bn, hence the transaction would imply a P/S ratio of 1.9. TV Prima’s audience share stands at around 27% vs. TV Nova’s 36% (week 38), while its market share is around 20% vs. TV Nova’s around 70%. We expect that MGT group may support TV Prima is terms of content and finances for production. We would also expect the competition on the TV ad market to strengthen.