(Bloomberg) -- RTL Group SA has agreed to sell its Dutch business to DPG Media for €1.1 billion ($1.2 billion) in cash.

The deal is expected to close in the middle of 2024, the German media company said in a statement on Friday. 

European broadcasters like RTL are looking for ways to streamline their businesses during an advertising pullback. The company, which is controlled by its parent company Bertelsmann SE & Co., has also weighed selling its stake in French broadcaster Groupe M6, and has said that market consolidation in Europe is necessary to “compete with global tech platforms.”  

Read More: Bertelsmann Decides Against Selling Stake in French TV Group M6

As part of the agreement, RTL and DPG — which operates news, television, radio, magazine and digital brands in the Netherlands, Belgium and Denmark — will start a partnership involving advertising sales and content, the companies said. RTL will also get “first-look rights” for the TV programs that RTL Nederland develops. DPG will use the RTL brand in the Netherlands for at least a decade. 

RTL shares rose 3.1% to €33.84 at 11:27 a.m. in Frankfurt. The stock has declined 14% this year. 

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