When Telefónica's first offer to buy Prisa's stake in Canal+ was published, the telco was putting €910 million on the table, but one year of negotiations and increasing competition have seen Telefónica finally pay €707 million for the platform's last 56%.
According to the information published by both companies, which announced yesterday (1 May) the completion of Canal+'s operation, Telefónica now owns 100% of Spain's second largest pay-TV platform. The telco has paid €565.5 million so far, while the remaining €141.5 million will be paid within the coming weeks.
By the end of 2012, Canal+ was the absolute leader of Spain's pay-TV market and the whole platform was valued at more than €2,000 million. But mostly due to the increasing price of sports rights and the gradual drops of subscribers, Canal+'s value decreased by more than €1,000 million until March last year, when Telefónica tabled its first offer.
During the long negotiation and authorisation process, Telefónica's Movistar TV deployed a fierce competition strategy which drove Movistar TV to top Spain's pay-TV market within six months, thus increasing Canal+'s value losses.
Now, more than one year after the first public offer, Telefónica has completed the Canal+ acquisition and owns nearly 70% of Spain's pay-TV market with Movistar TV's two million subs and Canal+'s 1.6 million.