Rapid TVNews reports that the pay-TV merger between Showtime Arabia and rival Orbit was concluded on time at the end of last month, according to reports out of Kuwait on Aug 11. A statement from Kuwait-based Kipco said the agreement was formally wrapped on July 31.The deal was announced last month, although no official valuation was given other than a very vague statement that the merger was worth “billions”. Neither was any information given as to who initiated the “merger”, although it is widely spoken of as a Showtime Arabia initiative. Showtime Arabia had reportedly bought out its Viacom minority partner in its Gulf-DTH operation. Kipco, an investment vehicle ultimately controlled by the Kuwait royal family, already controlled 75.3% of Gulf-DTH.

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Kuwait Projects Company (Kipco) has announced the merger of its satellite broadcast company Showtime with Orbit, one of the region's leading television companies.The deal brings together the Showtime and Orbit brands and operating platforms. The new company will become the leading pay-TV platform in the Middle East and North Africa (MENA).

The new company is a partnership between the Orbit Group, a member of the Riyadh-based Mawarid Group and Showtime Arabia, a subsidiary of Kipco. The deal follows statements by Kipco and Orbit Group calling for a consolidation of the region's pay-TV industry.

The new company will offer over 70 exclusive channels featuring the widest choice of exclusive first run Hollywood movies, premium sports, Arabic and international television entertainment.

The deal brings together the two core network operations comprising programming, marketing, distribution, broadcast technology and subscriber management systems. The merger offers customers superior programming choice, innovative decoder technology and the most complete pay-TV platform.

Mr Faisal Al Ayyar, Kipco's Vice Chairman, said the merger was good news for all concerned and another example of Kipco's successful business strategy.

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