French media group Vivendi is looking to acquire broadcasting giant Mediaset and merge it with Telecom Italia (TI), after increasing its stake in the telco, il Corriere della Sera reported.
According to the Italian daily, Vivendi, would like to up…
French media group Vivendi is looking to acquire broadcasting giant Mediaset and merge it with Telecom Italia (TI), after increasing its stake in the telco, il Corriere della Sera reported.
According to the Italian daily, Vivendi, would like to up its current 8.3% of voting rights in TI to 30%.
Vivendi chairman Vincent Bollore would also pursue a merger with Mediaset, owned by his long-time friend, former prime minister Silvio Berlusconi.
Analysts believe that Mediaset could be a good strategic option for Vivendi, which is reviewing pay-TV targets, having nearly exited telecoms investments in France, Brazil and Morocco, with a view to focusing on media and content.
A tie-up with Mediaset, which also operates leading Spanish TV network Mediaset Espana, would give Bollore a chance to expand into the Italian and Spanish content sectors, while TI would become a content distribution platform.
However, a potential deal would likely face intense regulatory and political scrutiny.
Sky-Mediaset rumours continue
Meanwhile, Mediaset’s pay-TV unit Mediaset Premium continues to attract interest from rival Sky Italia, with local news reporting that Berlusconi and Sky owner Rupert Murdoch met to discuss a potential merger.
Sky, which earlier this month inked a content partnership with Telecom Italia, is particularly interested in its rival’s exclusive rights to broadcast Champions League matches in Italy for the next three years, a package worth €700m (US$760m).
On Monday, Reuters reported that Sky had approached the conglomerate to buy Mediaset Premium but was rebuffed.
However, according to one of the sources, informal talks between the parties continued.
