Telefónica moves in to buy stake in Canal+
Juan Fernandez Gonzalez
| 07 May 2014
Telefónica's interest in Canal+ appears to be serious, having told the country's market regulator, Comisión Nacional del Mercado de Valores (CNMV), that it has presented a €725 million offer to buy 56% of the pay-TV platform.
No more details have been unveiled in the succinct release published by the Spanish telco through CNMV which will now have to study the market implications of the offer.
Telefónica already owns 22% of DTS - the legal name of the Canal+ group which is currently controlled by Prisa. Italy's Mediaset owns the other 22% of the pay-TV platform.
Telefónica and Mediaset have been negotiating with Prisa since the beginning of the year, and an agreement looked likely by the end of March, but the announcement has been delayed with no explanation. However, the Spanish competition commission did step in at the time and said that the deal may have ramifications in Europe.
Telefónica is also increasing its own pay-TV offer, which may be difficult to compete with if it also controls Canal+ and its nearly two million subscribers.
Canal+ is Spain's largest pay-TV operator and relies on a client base which spends a lot of money on premium content. In addition, it has one of the most used online platforms, Yomvi.
Telefónica is aiming to secure its place in the pay-TV market in Spain and Prisa has stated on several occasions that it needs to sell Canal+. The negotiations may well come to an end within the next few weeks.