NuCom Group acquires majority stake in Aroundhome (formerly Käuferportal)
ProSiebenSat.1 Group continues to expand its commerce portfolio: The worldwide growth equity investor General Atlantic sells Aroundhome shares to NuCom Group, the commerce business of ProSiebenSat.1, in exchange for an additional stake in NuCom. NuCom Group is thereby increasing its voting shares in Aroundhome from 42 percent to 94 percent. Aroundhome previously operated under the name Käuferportal and is Germany’s largest online broker for products and services around the house. NuCom Group now holds a majority stake in each of its ten portfolio companies. The transaction is subject to the approval of relevant antitrust authorities.
7Sports forms joint venture with eSports.com
7Sports, the sports business unit of the ProSiebenSat.1 Group, is forming a joint venture with the internationally positioned eSportscom AG. The platform of the same name is aimed at all eSports enthusiasts and fans and covers all aspects of the topic with content ranging from highlight videos from major eSports events and editorial reports through to online tournaments. 7Sports and eSportscom AG intend to jointly expand the product into the leading eSports platform in Germany, Austria and Switzerland. With its extensive expertise in the production and marketing of sports content, 7Sports will make a significant contribution to the platform’s growth. With the joint venture, ProSiebenSat.1 is clearly expanding its eSports activities.
ProSiebenSat.1 launches own live quiz app QUIPP
ProSiebenSat.1 Digital launches the live quiz app QUIPP for smartphones and tablet computers and therefore relies on a digital application via live streaming for the first time. Every day at 8 pm, quiz enthusiasts can prove their knowledge with the free app and earn money while guessing the correct answers in categories such as science, sports, history or politics. With QUIPP, ProSiebenSat.1 Digital launches mobile live entertainment and extends its digital reach. In addition to the German QUIPP App, there’s also an Austrian version available, which is produced in Vienna daily.
ProSiebenSat.1 Launches New Business Unit VERT under the Umbrella of Studio71
The ProSiebenSat.1 subsidiary Studio71 is establishing a new business unit, “VERT – The Vertical Content Division.” The name is derived from vertical mobile content in 9:16 format, which is in high demand on platforms such as Instagram and Snapchat and among young target groups and advertisers. VERT now offers a full-service range for the implementation of successful influencer campaigns for all brands seeking to present their messages in a high-quality form in the aesthetic world of Instagram. VERT benefits from a high-reach influencer portfolio that Studio71 has built up over the past years.
NuCom Group and PARSHIP ELITE Group acquire US matchmaking pioneer eharmony
ProSiebenSat.1 is announcing its first major transaction in the Commerce segment since partnering with General Atlantic: The NuCom Group and its portfolio company PARSHIP ELITE Group are acquiring 100% of eharmony. The company is considered the creator of the segment and one of the leading online matchmaking platforms in the United States. PARSHIP ELITE Group is the leading online matchmaking platform in the German-speaking and Benelux region. Since the majority acquisition, NuCom Group has supported the development of PARSHIP ELITE Group into one of its most successful portfolio companies today.
James Baker appointed President & COO of Red Arrow Studios
James Baker has been appointed President & COO of Red Arrow Studios. In his new role starting in March 2019, he will manage the global production network of ProSiebenSat.1. Baker will report directly to Max Conze, CEO of ProSiebenSat.1 Media SE. Baker’s predecessor Jan David Frouman, Chairman & CEO of Red Arrow Studios, and a member of ProSiebenSat.1 Media SE’s Executive Board, has decided to leave both posts when his current management contract concludes at the end of February 2019 after 15 years with ProSiebenSat.1.
PROSIEBENSAT.1 BEGINS CONSTRUCTION WORK FOR ITS "NEW CAMPUS" IN UNTERFÖHRING
With a symbolic turn of the sod, ProSiebenSat.1 has given the go-ahead for the construction of the "New Campus". Among other things, four studios will be built on an area of around 26,000 square meters, equipped with state-of-the-art production and broadcasting technology. In addition, the new campus offers flexibly designed office and conference rooms as well as a public entrance area. The campus brings together around 1,700 workplaces that were previously spread over several buildings. This makes it easier for ProSiebenSat.1 employees to work together and promotes direct and creative exchange across various departments and hierarchical levels.
PROSIEBENSAT.1 SELLING TROPO TO DNATA
ProSiebenSat.1 is completing the strategic review of its travel segment and will be selling its entire stake in tour operator Tropo to dnata, which is part of the Emirates Group. The purchase agreement also includes TV media volume worth several million euros for 2018 and 2019. ProSiebenSat.1 has held a majority stake in Tropo GmbH since 2012. In the roughly six years it has belonged to the media group, the tour operator for low-cost but high-quality travel packages, last-minute vacations, and hotel reservations has increased its brand awareness significantly through the use of TV advertising.
ProSiebenSat.1 and Discovery join forces to build the leading local streaming platform in Germany
ProSiebenSat.1 and Discovery announce plans to build the leading local streaming platform in Germany by integrating 7TV, maxdome and Eurosport player in one place. This will be a pioneering OTT platform in Germany offering the full entertainment package of live streams, an extensive media library with great local content and the best from Hollywood as well as high-quality sports content. The future product will deliver an un-matched digital entertainment experience for consumers’ needs. It will feature a wide free offering, an attractively priced advertising free tier and premium pay tiers with access to exclusive sports and movies. ProSiebenSat.1 and Discovery aim to create bespoke content and rapidly scale and invest into the platform. Building a dedicated team of more than 200 professionals will support the successful start of the platform in first half of 2019.
ProSiebenSat.1 Annual General Meeting Resolves Dividend Payment of EUR 1.93 per Share
The Annual General Meeting of ProSiebenSat.1 Media SE was held on May 16, 2018 in Munich. The shareholders adopted all proposed resolutions requiring their approval by a large majority. Around 870 participants attended the Annual General Meeting. The attendance rate was around 64% of share capital. ProSiebenSat.1 Media SE is continuing its earnings-oriented dividend policy: The shareholders resolved to distribute a dividend of EUR 1.93 per dividend-entitled share for the 2017 financial year (previous year: EUR 1.90). This equates to a total payout of around EUR 442 million and a payout ratio of 80.3% of adjusted net income. The dividend will be paid out on May 22, 2018. In addition, the remuneration system for Executive Board members was adopted by a significant majority of the Annual General Meeting.
ProSiebenSat.1 and Hubert Burda Media Agree to Collaborate on Content and Marketing
ProSiebenSat.1 Media SE and Hubert Burda Media have concluded a collaboration agreement for content and sales. The primary objective of the collaboration is to offer the advertising market additional services with high-quality content and a wider reach as well as cross-media and interlinked products. Both partners want to use their particular strengths with female target groups and initially focus their cooperation on the fashion and beauty industries. The existing joint digital marketing will also be developed. With their portfolio consisting of TV, digital and print, on average, both partners reach over 95 percent of the German public every month.
REDSEVEN ENTERTAINMENT MARKS TENTH ANNIVERSARY
RedSeven Entertainment is looking back on a success story: The company has become one of Germany’s most successful entertainment production companies and has produced hit formats such as “Germany’s next Topmodel“, “The Taste“ or “The Biggest Loser”. With the launch of its new Brand & Digital Studio unit, RedSeven specializes in developing and creating corporate marketing content for internal and external use. RedSeven is part of Red Arrow Studios, the production and distribution division of ProSiebenSat.1 Media SE.
ProSiebenSat.1, Mediengruppe, RTL Deutschlandand and United Internet Launch European netID Foundation
With the launch of the European netID Foundation, the log-in alliance by ProSiebenSat.1, Mediengruppe RTL Deutschland and United Internet is taking concrete shape. As a separate entity, the foundation will help internet providers in all industries to implement the new European data protection law. To this end, it is providing an open industry standard branded "netID", with which every website in Europe can offer its users a secure login pursuant to data protection regulations. At the same time, the foundation ensures the standard's compliance and further development.
ProSiebenSat.1 wins General Atlantic as partner for its Commerce unit NuCom Group
ProSiebenSat.1 Group, one of the largest independent media companies in Europe, is entering a long-term partnership with General Atlantic, a leading global growth equity firm, to help drive the strategic development of its Commerce business. ProSiebenSat.1 Group formed NCG – NuCom Group on January 1, 2018, which will unite ten strategic investments from its Commerce business - including Verivox, Parship Elite Group and Jochen Schweizer mydays Group.
ProSiebenSat.1 Media SE names Max Conze as new CEO
Max Conze will become the new CEO of ProSiebenSat.1 Media SE with effect from June 1, 2018. He will succeed the long-time ProSiebenSat.1 CEO Thomas Ebeling who left the Company on February 22, 2018. Until Max Conze will take up his post, Conrad Albert, Deputy CEO of ProSiebenSat.1 Media SE, serves as interim chairman from until May 31, 2018.
ProSiebenSat.1 Acquires E-Commerce Marketer Kairion
ProSiebenSat.1 Group continues to strengthen its activities in the ad-tech sector and is acquiring the e-commerce marketer Kairion from Cocomore AG. The company aggregates the advertising environments and data of over 80 online shops, an activity known as retail media. Advertisers can tailor and target their messages to what the shoppers are actually interested in buying.
ProSiebenSat.1 expands AdTech Stack
ProSiebenSat.1 is acquiring a majority in esome advertising technologies, the leading social-advertising provider in the DACH region. The acquisition complements the Group's growing AdTech portfolio. In November, ProSiebenSat.1 has also invested 42 percent in BuzzBird, a platform for the simple implementation of influencer marketing campaigns.
Capital Markets Day 2017: ProSiebenSat.1 announces new Group setup with three-pillar strategy
As of January 2018, the Group will have a new organizational setup with the three business areas of Entertainment, Content Production & Global Sales and Commerce. The aim is to adapt the Group to the dynamically changing environment and to secure further sustainable, profitable growth.
ProSiebenSat.1 sells travel website weg.de to lastminute.com
Red Arrow acquires majority stake in US film distributor Gravitas Ventures
Red Arrow has acquired a majority stake in global distribution company Gravitas Ventures. Based in the US, Gravitas is one of the largest all-rights film distributors in the world, with a particular focus on independently produced films and documentaries for global digital, SVOD and OTT platforms.
Red Arrow partners with US production company 10Fold
Red Arrow has closed a commercial and creative partnership with the newly founded US production company 10Fold. Based in Los Angeles, 10Fold is focused on both non-scripted and scripted content and boasts both active productions and a large slate of market-ready developments across numerous genres. 10Fold is owned by Emmy-winning producers Craig Armstrong and Rick Ringbakk, who have more than 45 years of combined experience in the entertainment industry.
ProSiebenSat.1 TV Germany agrees partnership with A + E Networks
ProSiebenSat.1 TV Deutschland GmbH and the US program provider A + E Networks have agreed on a multi-year volume deal. The contract gives the German broadcasting group access to the extensive program catalog of A + E. In addition to programs of the internationally known broadcasters A + E, Lifetime and FYI, ProSiebenSat.1 also has exclusive rights to the portfolio of the History Channel, the most successful channel of A + E Networks.
ProSiebenSat.1, RTL Deutschland Media Group, and United Internet Create Log-in Alliance – First Partner: Zalando
The aim of the log-in alliance of ProSiebenSat.1, RTL Deutschland Media Group, and United Internet is to create a simple and secure registration and single sign-on service online. Three leading German media and internet companies are thus adapting their platforms to the EU’s new data protection standards. Zalando SE will be the first partner to make use of this log-in solution.
ProSiebenSat.1 develops “Media Regulations 4.0” model to promote diversity of opinion in young target groups
With “Media Regulations 4.0”, ProSiebenSat.1 Media SE is presenting a model prompting discussion about the realignment of media policy in Germany. The aim is to reach a larger number of young people with public service content to promote democratic values, contribute to societal discourse and enhance social coherence.
SevenVentures: Successful Sale of Media-for-Equity Participations
SevenVentures, ProSiebenSat.1 Media SE’s financial investor, has successfully sold a large part of its media-for-equity portfolio to the leading private equity firm Lexington Partners. As part of the transaction, up to 16 minority participations of SevenVentures and other Group companies will be transferred to the new “Crosslantic Capital” fund. Sales proceeds amount to a mid-double-digit million Euro figure. In regards to the media and cash investments made, ProSiebenSat.1 Group doubled the value and generated an IRR of around 30 %.
ProSiebenSat.1 Acquires Commerce Business for Experience Gifts from Jochen Schweizer
ProSiebenSat.1 Group is expanding its commerce business with another acquisition by taking a majority stake in Jochen Schweizer GmbH, which operates the business for experience gifts within the Jochen Schweizer Holding. ProSiebenSat.1 combines the acquired company with its own 100 % stake in mydays under the umbrella of Jochen Schweizer mydays Holding GmbH. Both companies and brands remain under the new holding company and complement each other in terms of offering and focus.
ProSiebenSat.1 Sells Etraveli to CVC Capital Partners
ProSiebenSat.1 Group is selling all its shares in Etraveli Holding AB to CVC Capital Partners, an international financial investor. The company, which is based in Uppsala, Sweden, is a global online travel agency (OTA) for flights. Since ProSiebenSat.1’s acquisition in November 2015, the company has significantly increased its revenues and earnings. In addition, the company’s value (based on an enterprise value of EUR 508 million) more than doubled within this period.
European Media Corporations Agree on Joint Venture: ProSiebenSat.1, TF1 and Mediaset found European Broadcaster Exchange (EBX)
ProSiebenSat.1, TF1 Group (France) and Mediaset (Italy and Spain), are establishing in equal shares the European Broadcaster Exchange (EBX). The joint venture marks the start of a deeper strategic collaboration to drive forward the technological development of online advertising. One focus will be on high-quality pan-European video campaigns to create new ways for advertisers to reach their customers. Since November 2017 Channel 4 has invested in European Broadcaster Exchange as exclusive UK partner.
Dr. Jan Kemper to become CFO of ProSiebenSat.1 Media SE
Dr. Jan Kemper has been a member of the Executive Board of ProSiebenSat.1 Media as Chief Financial Officer since June 1, 2017. He will succeed Dr. Gunnar Wiedenfels, who is leaving the company at the end of March 2017. Kemper will also assume responsibility for the M&A business of ProSiebenSat.1 Media SE as of August 1, 2017, in addition to his duties as CFO of the Group. Chief Investment Officer Dr. Ralf Schremper is leaving the Company at the end of July 2017.
Annual General Meeting Resolves Dividend Payment of EUR 1.90 per Share
At the Annual General Meeting of ProSiebenSat.1 Media SE was, the shareholders resolved to distribute a dividend of EUR 1.90 per dividend-entitled share for the 2016 financial year. This represents an increase of 10 cents compared to the previous year and equates to a total payout of around EUR 435 million and a payout ratio of 84.7 % of underlying net income. The Company is thus continuing its earnings-oriented dividend policy.
ProSiebenSat.1 and Discovery partner on next generation OTT / Mobile Service in Germany
ProSiebenSat.1 and Discovery Communications today announced plans to expand Germany’s mobile video and OTT marketplace through an enhanced streaming joint venture partnership for their brands in Germany. The 50/50 JV will bring German viewers more options and better quality to enjoy their favorite content and shows from ProSiebenSat.1, Discovery and eventually other content partners. At launch, the streaming service will bring together the seven channels included in ProSiebenSat.1’s current 7TV mobile offering: ProSieben, SAT.1, kabel eins, sixx, ProSieben MAXX, SAT.1 Gold and kabel eins Doku, along with Discovery’s free-to-air German channels DMAX and TLC.
PULS 4 is acquiring the Austrian TV-station ATV
ProSiebenSat.1 PULS 4 is acquiring the Austrian broadcasting group ATV from Tele München Fernseh GmbH & Co. Produktionsgesellschaft. ATV will be maintained as a full-service broadcaster with clear positioning. At the same time, the private station will benefit after being integrated into ProSiebenSat.1 PULS 4 Group from the synergies within the station family.
ProSiebenSat.1 TV Deutschland and Scripps Networks Interactive agree to strategic cooperation
German broadcaster ProSiebenSat.1 TV Deutschland GmbH and leading U.S. developer of lifestyle content Scripps Networks Interactive, have announced an extensive, multi-year license agreement. This strategic cooperation will be launched in spring 2017 with branded blocks of Scripps Networks’ popular television brands HGTV, DIY Network, Food Network and Travel Channel on ProSiebenSat.1 TV Deutschland channels. The volume deal boasts more than 1.200 hours of high-quality lifestyle and factual entertainment programming to premiere on German television. In addition to broadcasting rights, the cooperation includes extensive online rights.
European Broadcasters invest in Studio71
ProSiebenSat.1 Group continues to internationalize its online video business and is building up a strategic partnership with its European media partners TF1 Group (France) and Mediaset (Italy) in the field of multi-channel networks (MCN). The new investors will support Studio71 in tapping into additional markets alongside Germany, USA, Canada, Great Britain and Austria, and in continuing its strong growth trajectory over the recent years.
Sabine Eckhardt joins ProSiebenSat.1 Executive Board
Sabine Eckhardt has been a member of the Executive Board of ProSiebenSat.1 Media SE since January 1, 2017 as Chief Commercial Officer (CCO). In her current role as Managing Director of SevenOne Media and SevenOne AdFactory, she was mainly responsible for developing the business with innovative, cross-media advertising products as well as the ProSiebenSat.1 marketer’s new clients business. In addition, she will now push the exploitation of group-wide synergy potential. Within the Digital Ventures & Commerce segment, she will also be assuming responsibility on Board level for the Group’s SevenVentures business. Dr. Christian Wegner leaves the Company as of December 31, 2016 after twelve years.
kabel eins Doku successfully launched
With kabel eins Doku, ProSiebenSat.1 launched a new free TV channel in Germany. History, real crime, nature and technology are the focus of documentaries and reports. The advertising-financed station is aimed specifically at male viewers aged 40 to 64. The Group is thus pursuing its successful multi-station strategy.
ProSiebenSat.1 acquires Parship and Elite-Partner
ProSiebenSat.1 Group has expanded its digital portfolio and acquired a majority stake in the PARSHIP ELITE Group, the leading provider of online dating services in the German-speaking region. This acquisition underlines the strategic focus on established and profitable growth companies and complete the existing portfolio by adding value.
Red Arrow further invests in key US market
The Red Arrow Entertainment Group has acquired a majority stake in the US production company 44Blue. The company is a leading producer of non-scripted TV programs. Red Arrow is thus expanding the factual entertainment portfolio and strengthening its presence on the key market of the US at the same time. Here, Red Arrow is also expanding in the digital sector and investing in the US production company Band of Outsiders.
maxdome concludes exclusive partnership with Deutsche Bahn
From the end of 2016, ICE passengers will be able to watch films and series on maxdome, ProSiebenSat.1 Group’s online video library. The Group has concluded a long-term partnership with Deutsche Bahn. This means that maxdome will be integrated into the ICE portal of Deutsche Bahn as the only video service, which will be accessible via on-board WiFi. With this new partnership, maxdome will can significantly increase its reach. Every year, around 80 million people in Germany travel with ICE trains.
Red Arrow invests in Mad Rabbit in Canada and the USA
Red Arrow Entertainment Group has invested in the newly established production company Mad Rabbit. The joint venture, which is based in Toronto and Los Angeles, produces high-value fiction formats for the global market. Red Arrow has a minority interest in the company and all future Mad Rabbit projects will be distributed around the world by Red Arrow International. Fiction programs are particularly relevant for the Group because of the high international demand.
ProSiebenSat.1 to be included into the DAX
As first media company, ProSiebenSat.1Media SE has been included in the leading index in Germany (the DAX) since March 21, 2016. Thus, the Group is one of the 30 largest listed corporations in Germany following market capitalization and trading volume. Over the past five years, the share’s value has more than tripled. In 2016, the share started with a profit as well: It reached its highest closing price at EUR 48.66 on March 1 and was quoted at EUR 45.19 at the end of the quarter (previous year: EUR 45.71). The median price target is EUR 51.80.
Jan David Frouman appointed to the Executive Board of ProSiebenSat.1 Media SE
Jan David Frouman has been a member of the Executive Board of ProSiebenSat.1 Media SE since March 1, 2016. The newly created Executive Board department, Content & Broadcasting, comprises TV activities with all station brands and the Group’s content strategy in Germany, Austria and Switzerland. Frouman has been working for ProSiebenSat.1 since 2004; as CEO and Chairman, he remains in charge of the Red Arrow Entertainment Group.
ProSiebenSat.1 complements its marketing offer with digital-out-of-home
The Group has concluded an exclusive partnership with Cittadino. As a result, ProSiebenSat.1 is now able to market digital screens in exclusive and high footfall locations — including airports, gas stations and various public places in major cities. With this collaboration, we will reach more than 225 million additional contacts each month and offer advertising customers the entire portfolio on video screens: from TV to online and mobile platforms to digital-out-of-home.
Red Arrow and Smuggler invest in new production company, Cove Pictures
Together with Smuggler, Red Arrow Entertainment Group founded the international production company Cove Pictures. The joint venture produces high-value fiction and comedy formats and factual programs for the global market. Red Arrow holds a minority stake in Cove pictures. Cove already has forged a creative alliance with Eon Productions to develop a number of shows for the international market.
Red Arrow acquires majority interest in Dorsey Pictures
Red Arrow Entertainment Group acquired a majority interest in Dorsey Pictures, a production company in the US. The Denver-based entity is a leading US producer of non-scripted TV programs and branded entertainment. The acquisition enlarges Red Arrow’s US production network with new program genres such as “outdoor adventure”. Red Arrow also opens up a new business area with branded entertainment.
Red Arrow Entertainment acquires majority stake in Karga Seven Pictures
Karga Seven is a leading US producer and developer of factual entertainment formats and produces both scripted and non-scripted programs. Via this acquisition, Red Arrow is continuing its rapid expansion in the world’s most important TV market. Karga Seven is headquartered in Los Angeles and the company also has a location in Istanbul.
ProSiebenSat.1 and Disney signed a long-term master license agreement
ProSiebenSat.1 and Disney Germany, Switzerland and Austria signed a long-term master license agreement. The agreement gives ProSiebenSat.1 access to new Hollywood blockbusters and TV series from the Disney, Disney·Pixar, Lucasfilm, Marvel, and ABC Studios production companies. ProSiebenSat.1 Group has agreements with nearly all major Hollywood studios, producers, and film companies. The Group’s program supply is therefore secured in the long term.
Internationalization of the travel portfolio
With its purchase of etraveli, ProSiebenSat.1 realized the largest acquisition to date in its digital business. In October, the Company has acquired the leading pan-European online travel agency for flights. It complements the Travel Vertical with the Flight segment. By investing in etraveli, ProSiebenSat.1 has made its existing travel portfolio more international and set the course for further growth beyond Europe’s borders.
Axel Springer and ProSiebenSat.1 promote digital start-ups
Axel Springer SE and ProSiebenSat.1 Media SE have launched a joint project to promote high-growth digital companies. The initiative aims to support innovative business ideas and start-ups in order to improve Germany’s position as a digital location, also on an international level. To this end, the two groups have already implemented three joint initiatives: Besides their investment in the Lakestar II investment fund, Axel Springer and ProSiebenSat.1 each acquired a minority interest in Jaunt, a US company specializing in augmented reality. The two media companies also invested in the online platform MyTicket.
ProSiebenSat.1 becomes first German station group to offer addressable TV
On the basis of HbbTV, ProSiebenSat.1 is developing new forms of advertising that allow targeted modulation of commercials by region and by target group. In “switch-in” advertising for instance, a digital advertising banner is superimposed on the linear TV channel whenever the viewer switches over to the stations SAT.1, ProSieben, kabel eins and sixx. The ProSiebenSat.1 marketer SevenOne Media won the automotive company Daimler as first customer. In the new HbbTV-based forms of advertising, the Group sees a long-term opportunity to offer regional TV advertising via addressable TV.
ProSiebenSat.1 broadens its expertise in the German programmatic advertising market
ProSiebenSat.1 has acquired a 51.0% interest in Virtual Minds AG. The company is one of the leading European specialists in the dynamically growing programmatic advertising market. Virtual Minds’ products enable the increasingly automated sale and procurement of digital advertising, especially in the important market segment of video and moving images. Prior to this, ProSiebenSat.1 had already acquired a majority interest in SMARTSTREAM.TV, a company that provides services relating to the optimization of online advertising space. ProSiebenSat.1 is constantly broadening its own expertise in the automated sale of advertising in digital media and in individualized targeting. Thus, the Group offers its customers attractive online platforms and creates new growth opportunities.
Red Arrow establishes Ripple Entertainment in the US
Red Arrow Entertainment Group has strengthened its global digital presence by launching Ripple Entertainment, a digital media company in Los Angeles. The objective of Ripple Entertainment is to operate digital networks and to develop and produce content with Red Arrow Entertainment Group production companies, third-party providers, and independent creators. At the same time, Ripple Entertainment will exploit Red Arrow’s existing programming digitally, thus maximizing the value of the portfolio.