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
Barry Walsh is editor and content director for realscreen, and has served as editor of the publication since 2009. With a career in entertainment media that spans two decades, prior to realscreen, he held the associate editor post for now defunct sister publication Boards, which focused on the advertising and commercial production industries. Before Boards, he served as editor of Canadian Music Network, a weekly music industry trade, and as music editor for HMV.com. As content director, he also oversees the development of content for the brand's market-leading events, the Realscreen Summit and Realscreen West, as well as new content initiatives.

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