By Nick Kostov 

PARIS -- French media firm Vivendi SA said Friday that it had acquired the pay TV business of Italy's Mediaset SpA, moving to snap up more assets to create a European rival to U.S. streaming-video giant Netflix Inc. and pay-TV giant Sky PLC.

Under the terms of the deal, Vivendi and Mediaset will swap 3.5% stakes, the companies said. Since Vivendi's market value is roughly six times more than Mediaset's, Vivendi will acquire its 89% stake in Mediaset Premium, the Italian company's loss-making pay TV unit. Spain's Telefónica, which owns about 11% of Mediaset Premium, is also selling its shareholding to Vivendi as part of the deal.

"The agreement with Mediaset confirms Vivendi's intention to build strong positions in Southern Europe, a market that shares a similar Latin culture and roots," Vivendi said in a statement.

Write to Nick Kostov at Nick.Kostov@wsj.com

 

(END) Dow Jones Newswires

April 08, 2016 13:28 ET (17:28 GMT)

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