The deal, announced on Friday night after weeks of speculation, will consolidate the lead of Telecinco, Mediaset's stock market-listed Spanish unit, in a market which has been hit hard by the advertising downturn. It will also help Prisa pay down heavy debts accumulated when it was forced to buy out minorities in Sogecable, its television holding company, about two years ago. ... Prisa has for more than a year been selling parts of its radio, television and publishing interests to pay down about €1.8bn in short-term debt linked to the buy-out of minority shareholders in Sogecable. It recently agreed the sale of a 21 per cent stake in Digital Plus to Telefónica, the Spanish telecommunications giant.
It will also help Prisa pay down heavy debts accumulated when it was forced to buy out minorities in Sogecable, its television holding company, about two years ago.
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Prisa has for more than a year been selling parts of its radio, television and publishing interests to pay down about €1.8bn in short-term debt linked to the buy-out of minority shareholders in Sogecable. It recently agreed the sale of a 21 per cent stake in Digital Plus to Telefónica, the Spanish telecommunications giant.
As for comments in Italy, there is speculation that this operation creates favourable conditions for a merger of Telecom Italia with Telefonica. Mediaset's (ergo the Italian government's) propaganda campaign would like to see Telecom "relieved" of its tlc network on "patriotic" grounds. Exactly who would eventually get their patriotic hands on the tlc network is left to the imagination, however the government would certainly have more say in its management.
