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
Meagan Kashty is an associate editor of realscreen, an international print and online magazine that covers the non-fiction film and television industries. Meagan is an award-winning business journalist. Prior to joining the realscreen team, Meagan was online editor of Canadian Grocer, named Magazine of the Year at the 2015 Canadian Business Media Awards. She can be reached at mkashty@brunico.com, and you can follow her on Twitter @MegKashty

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