In a major shakeup of the European television market, German broadcast giant RTL Group has signed a deal to acquire pay-TV group Sky Deutschland from Comcast.

The deal includes a 150 million ($176 million) upfront payment plus a variable component of up to 377 million ($442 million), provided RTLs share price exceeds 41, which Comcast can trigger any time within five years.

The agreement, announced by RTL parent Bertelsmann on Friday, is still subject to regulatory approval, but if it passes muster, it could mark a seismic shift in the European TV and streaming landscape. By combining Skys subscribers across Germany, Austria and Switzerland with RTLs own premium RTL+ service, the company can boast of a streaming service reaching 11.5 million paying subscribers, leapfrogging Disney to become the third-biggest provider of streaming services in Germany after Netflix and Amazon Prime. Bertelsmann and RTL CEO Thomas Rabe called the deal transformational in his companys strategy of creating national media champions to compete with global streaming behemoths.

Following this transaction, Germany will once again be our largest market, said Rabe, At the same time, this acquisition is a step on the path toward strengthening European media markets an absolute necessity in the competition with global tech and streaming platforms.

The purchase gives RTL access to Skys premium sports rights, including Bundesliga and Premier League soccer, and Formula 1 motor racing, as well as Skys WOW streaming service.

Sky Deutschland reported around 2 billion ($2.34 billion) in annual revenue last year, but the company has never made a profit. With the launch of HBO Max in Germany next year, Sky will also lose its position as the exclusive provider of HBO content in German-speaking territories. RTL is believed to have approached Comcast on the deal. Comcast is not thought to be planning a sale of its other European operations, in the U.K./Ireland and Italy.

Rabe has tried to bulk up national operations in France and the Netherlands only to be blocked by competition authorities. In 2022 Bertelsmann dropped a planned merger between RTLs French network M6 and Frances leading commercial broadcaster TF1, amid stiff regulatory opposition. Last week, TF1 instead teamed up with Netflix, signing a landmark carriage agreement deal to stream all of its TV channels on the platform.

In 2023, antitrust watchdogs in the Netherlands rejected RTLs bid to buy the Dutch Talpa Network. Talpa has since signed a deal to sell its Dutch operation to Belgiums DPG Media, an agreement that is still pending regulatory approval.