Telefonica offers Mediaset EUR 295 mln for Digital+ stake

News Video Italy 18 JUN 2014
Telefonica offers Mediaset EUR 295 mln for Digital+ stake
Telefonica has offered EUR 295 million to Italian broadcaster Mediaset for its 22 percent stake in Spanish pay-TV platform Digital+. In a statement to Spain's market regulator CNMV, Telefonica said the binding offer may increase by a further EUR 10 million if it completes the purchase of 56 percent of Digital+ from Prisa, and by as much as EUR 20 million more depending on gains in pay-TV customers over the next 4 years. If Mediaset accepts Telefonica’s offer, it will also waive a preferential right to acquire Prisa’s stake in Digital+, for which Telefonica will pay Mediaset an additional EUR 30 million.

Earlier this month 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. Buying Mediaset's stake would give it full control of Digital+ and 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 be moving toward accepting Telefonica's offer to free up funds to bid for the rights to televise Serie A, Italy's top-flight football league, between 2015 and 2018.

Categories:

Video

Companies:

Digital+,  Mediaset,  Movistar,  Prisa,  Canal+,  Telefonica

Countries:

Italy,  Spain

Tags:

Broadcast, M&A buyouts & divestments

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