Spain’s Telefónica Buys into Mediaset’s Pay-TV Business

July 7, 2014 World Screen Top Stories
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MILAN: The Spanish telecommunications giant Telefónica has agreed to purchase an 11.1 percent stake in the Mediaset Premium pay-TV business for 100 million euros ($136 million).

The agreement comes shortly after Telefónica bought Mediaset España's 22 percent stake in Canal Plus. Mediaset will now transfer its pay-TV activities to a new company, which will have an equity value of 900 million euros ($1.22 billion).

The move "marks an important alliance between Mediaset and Telefónica for future cooperation in their respective pay-TV activities in terms of technology, know-how and content," according to a statement from Mediaset.

The statement continued: "The entry into Premium and a partner of the standing of Telefónica begins a process of opening up the Italian pay-TV operator to other international partners, with a view to developing content production and distribution activities across all the pay platforms."