© 2010 Rapid TV News
Iñaki Ferreras ©RapidTVNews | 08-02-2010
Spanish telco Telefónica has asked Digital+'s owners, media group Prisa to reduce the satellite pay-TV operator's debt to a tenth of its current levels, leaving just €100 million in debt for Digital+.
The move is one of the conditions of Telefónica’s taking the stake in Digital+. But cutting Digital+'s debt to €100 million is likely to be a difficult task.
Telefónica itself has allocated €240 million for its 22% of Digital+ and will also cancel a €230 million credit that Prisa owed it. Mediaset, which is also taking a 22% stake, will allocate €500 million, but that must be shared between Sogecable's Cuatro and Digital+.
Mediaset and both companies are continuing negotiations to share power and Digital+'s shares. According to the newspaper "La Información" these negotiations are difficult due to both parties' interests in keeping as much power as possible in the resulting enterprise.
While Mediaset, owner of one of the most important Spanish national private channels Telecinco, has found in the satellite operator a source of content, Telefónica's interest is to extend its client base for its pay-DSL TV operator Imagenio.
Now the legal decision will come from the European Commission and Spain's National Competition Commission which will give or refuse the green light to the agreement between May and June this year.
Telefónica will name Digital+’s CEO's and will be in charge of the company’s finances while Mediaset will manage the advertising side and will have the same number of representatives executives on the board.
© Rapid TV News 2010
