Vivendi Close to Acquiring Mediaset's Pay TV Business -- Update
April 08 2016 - 01:43PM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.