Mediaset open to Vivendi proposal, rules out TIM deal

News Video Italy 19 JAN 2017
Mediaset open to Vivendi proposal, rules out TIM deal

Italian commercial broadcaster Mediaset is open to reaching an agreement with Vivendi as long as it creates growth and doesn’t involve Telecom Italia, said Mediaset CEO Pier Silvio Berlusconi following the presentation of the company’s 2020 strategy. "Mediaset is open to any proposal that creates value and makes industrial sense," he said, according to La Stampa, adding that Vivendi CEO Arnaud de Puyfontaine made only "a vague reference" to a possible accord involving Telecom Italia (TIM) when they met. “A combination of TV and telecoms only makes sense for those who deal with telecommunications,” said Berlusconi. The French company is already Telecom Italia's top shareholder with a 24.9 percent share and has built up a near 30 percent stake in Mediaset.

At the official London presentation of Mediaset’s new strategy, Berlusconi confirmed that the company expects to increase its Italian operating profit to EUR 468 million by 2020, some 17 times higher than the current figure, by converting its Premium pay-TV unit into a platform open to other operators. Mediaset's CEO said the target is valid with or without football and the company will take part in forthcoming bidding for rights with a new approach based on economic feasibility. Premium currently spends some EUR 600 million a year on rights to broadcast football, including EUR 380 million on Serie A rights and EUR 220 on the Champions League. 

Categories:

Video

Companies:

TIM,  Telecom Italia,  Mediaset,  Vivendi

Countries:

Italy

Tags:

Production planning & operations, Financial figures, Broadcast, Corporate strategy, M&A buyouts & divestments

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