Telefonica is said to be in negotiations with Italian group Mediaset to acquire its 22% stake in Spanish pay-TV operator Canal+ as the telco attempts to gain 100% control of the DTH provider.
Telefonica could pay €350m (US$476m) for the stake, people…
Telefonica is said to be in negotiations with Italian group Mediaset to acquire its 22% stake in Spanish pay-TV operator Canal+ as the telco attempts to gain 100% control of the DTH provider.
Telefonica could pay €350m (US$476m) for the stake, people familiar with the matter told Bloomberg.
Neither Telefonica nor Mediaset were immediately available to comment before the press deadline.
The talks follow Telefonica coming to an agreement with Canal+’s parent Prisa at the start of the week to acquire its 56% stake for €750m (US$1.02bn). Telefonica already owns the remaining 22% of the satellite broadcaster, which is officially known as Distribuidora de Television Digital.
Following Telefonica and Prisa’s agreement on 2 June Mediaset had 15 calendar days to exercise its right of first refusal or its co-sale rights.
Telefonica’s deal with Prisa is subject to approval from Prisa’s creditor banks and the competition authorities.
Spain’s number three mobile operator, Orange, has already protested about the tie-up. The French telco has said the deal would give Telefonica an 80% market share of pay-TV content in Spain and has urged antitrust and telecoms regulator CNMC to veto the takeover, or impose significant remedies.
Canal+ has 1.6 million subscribers and generated €1.16bn in total revenues for 2013, and €28m EBITDA.
