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Telefonica buys Mediaset stake in Digital+ for EUR 295 mln
2014-07-07 09:34:00| Telecompaper Headlines
(Telecompaper) Telefonica has agreed to acquire Mediaset's 22 percent stake in Spanish pay-TV platform Digital+ for an initial EUR 295 million. Telefonica said it had also agreed to pay Mediaset a further EUR 30 million in compensation for waiving its right of first refusal for the stake, a further EUR 10 million when it completes the acquisition of Prisa's 56 percent stake in Digital+ and an additional EUR 30 million depending on the future performance of the Spanish pay-TV market. In June Telefonica said it had closed the purchase of the 56 percent stake in Digital+ owned by Prisa for EUR 750 million to raise its stake in the broadcaster to 78 percent, a deal which is still subject to regulatory approval. If Spain's regulator green lights the deal, Telefonica would take full control of Digital+ and gain greater flexibility in integrating TV content into its Movistar Fusion convergent packages. The acquisition of Digital+ brings with it a large customer base in the form of the 1.6 million subscribers to pay-TV channel Canal+ and gives Telefonica access to Prisa's TV catalogue, including its rights to live Spanish football games. Mediaset is said to have accepted Telefonica's offer to free up funds to pay for the rights to televise Serie A, Italy's top-flight football league, between 2015 and 2018.
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Category:Telecommunications