TV

Telefonica buys 11.1% of Mediaset Premium

Spanish telecommunications giant Telefónica has acquired an 11.1% stake in Italian media firm Mediaset's pay-TV business Mediaset Premium, for US$136 million.
July 7, 2014

Spanish telecommunications giant Telefónica SA has acquired an 11.1% stake in Italian media firm Mediaset’s pay-TV business Mediaset Premium, in exchange for a cash injection of US$136 million.

The Wall Street Journal reports that Telefónica is the first suitor the Italian pay-TV business has courted to invest in the money-losing Mediaset Premium, with Al Jazeera and Vivendi also being mentioned as possible investors.

The agreement between Telefónica and Mediaset sports an equity value of US$1.23 billion in a new company that will hold Mediaset’s pay-TV business, and is the second agreement between the two media entities: just five days ago, Telefónica agreed to pay US$401 million for Mediaset’s 22% stake in Spanish pay-TV platform Digital Plus.

Mediaset Premium’s 2013 subscription revenue was US$750.6 million, up 6% from 2012. Advertising revenue was not disclosed.

 

About The Author
Managing editor with realscreen publication, an international print and online magazine that covers the non-fiction film and television industries. Darah is an award-winning journalist who has spent over two decades covering a wide range of issues from real estate and urban development to immigration, politics and human rights, primarily with The Vancouver Sun. Prior to joining realscreen, she was editor of Stream Daily, realscreen's sister publication covering the dynamic global digital video industry. She also served a stint as a war reporter in Afghanistan for television and print, and was a national business blogger with Yahoo Canada.

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