Telefonica has completed the acquisition of Spanish DTH business Canal+ (Distribuidora de Television Digital, or DTS) from media company Prisa.
In a stock market filing last night, the telco announced that it had paid €565.5m – 80% of the agreed…
Telefonica has completed the acquisition of Spanish DTH business Canal+ (Distribuidora de Television Digital, or DTS) from media company Prisa.
In a stock market filing last night, the telco announced that it had paid €565.5m – 80% of the agreed €707m purchase price. It said it would pay the remaining 20% once the adjustments referred to in the purchase agreement are finalised. This could lead to either a rise or a fall in the price, it noted.
Telefonica agreed in July 2014 to acquire the 56% of Canal Plus that it did not already own for €750m, but the value of that stake has since fallen.
To gain clearance with Spanish competition watchdog the CNMC, Telefonica agreed to wholesale 50% of its premium content, including football, to rivals at regulated prices. Another condition will see Telefonica’s exclusivity period on remaining content reduced from five years to two years.
The conditions are aimed at curbing the combined group’s dominance in pay-TV. Telefonica’s own Movistar TV, plus Digital+, account for 84% of the market’s revenue, and seven out of ten customers.