Telefónica gets controlling stake in Canal+
Juan Fernandez Gonzalez
| 03 June 2014
No more rumours or speculation, Prisa and Telefónica have finally signed a deal through which César Alierta's company becomes the king of Spain's pay-TV market, with a 78% share of Canal+.

Prisa, the publishing house of the newspaper El Pais, announced that it has sold 56% of Canal+ to Telefónica for €750 million. The rest of the platform (22%) is owned by Mediaset.

The terms of the contract will be communicated to Mediaset this week who will then have 15 days to execute its preferential acquisition right. The agreement is also pending on the approval of the banks which own Prisa's debt as well as the competition regulators.

The deal will help Prisa with its huge debt and support the company's restructuring.

"It's a great new for Prisa and Telefónica," said Juan Luis Cebrían, Prisa's president. "We announced a few months ago our efforts to bring the company into the education and information business, with special focus on Latin America. Our pay-TV platform is a symbol due to its high quality and I'm sure Telefónica is going to consolidate the market's leadership with it."

César Alierta, Telefónica's president, added that the operation is "a step forward in the process of transforming the company to an exemplary digital telco".