Pay TV: Telefonica negotiates purchase of Mediaset's 22% share in Canal+ Spain for €350m

The Spanish telecommunications company Telefonica has initiated negotiations with the pay-TV group Mediaset España to purchase its 22% share in pay-TV group DTS (Canal+ Spain), according to U.S. and Italian outlets on 04/06/2014. The amount of the transaction could reach €350m.

The Spanish media company Prisa finalised the sale of 56% of its subsidiary DTS (formerly known as Digital+) to Telefonica for €750m on 02/06/2014. Up to now, Telefonica and broadcaster Mediaset España have held 44% of DTS, or 22% each. Telefonica will therefore now have 78% of Canal+ Spain.

Completion of the transaction remains subject to approval by the banks that are Prisa's creditors, as well as by the Spanish competition authorities. And, according to the agreements with DTS shareholders, Mediaset España had 15 days (from 02/06/2014) to exercise its right of first refusal on the operation or to begin a process of selling its shares to Telefonica.

Mediaset España, a subsidiary of the Italian pay-TV company Mediaset, appears to have therefore chosen the second option. The group would perhaps use the money…