UPDATE 1-Auction for Bundesliga broadcast rights heats up
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UPDATE 1-Auction for Bundesliga broadcast rights heats up

www.reuters.com   | 02.04.2012.

FRANKFURT, April 2 (Reuters) - Broadcasters and telecommunications companies are going head-to-head for rights to broadcast top-flight German soccer league matches as a deadline to submit bids in an auction runs out on Monday.
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* Deutsche Telekom to bid for satellite, cable rights

* D. Telekom seen head-to-head with Sky Deutschland

* Deutsche Telekom down 0.3 pct, Sky down 5.2 pct

FRANKFURT, April 2 (Reuters) - Broadcasters and telecommunications companies are going head-to-head for rights to broadcast top-flight German soccer league matches as a deadline to submit bids in an auction runs out on Monday.

Deutsche Telekom, Germany's biggest telecoms company, said it will submit its offer later in the day, competing with another 14 expected bidders in an auction tipped to fetch a record 450 million euros ($599 million) a season.

Germany's Bundesliga matches draw an average television audience of about 18 million people, only about a sixth of the U.S. Super Bowl's viewership but still representing almost a quarter of soccer-crazy Germany's population.

Deutsche Telekom aims to expand its reach to satellite and cable rights, adding to the internet and mobile network rights it has now and pitting it against pay-TV operator Sky Deutschland, whose main draw is Bundesliga soccer.

Shares of Sky Deutschland were down 5.2 percent at 1.97 euros by 1207 GMT. Deutsche Telekom was down 0.3 percent at 9.01 euros.

If Deutsche Telekom wins the rights for cable and satellite, Sky Deutschland may then end up paying a higher price to sub-license the rights it needs to reach its 3 million subscribers.

Analysts have said they still see a good chance that Sky Deutschland will win the bid for cable and satellite rights, especially as any attempt in recent years to pry them from the company's grip has failed.

There could be a second round of bidding for the rights, which cover four seasons starting in 2013/14, which means it may take another month until results of the auction are known.

The DFL soccer league has not named the bidders. Vodafone , the world's largest mobile operator in terms of revenue, has said it had dropped plans to bid.



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