Italian media company Mediaset has agreed a deal to sell its pay-television division, Mediaset Premium, to Vivendi as part of a broader alliance with the French media company, according to Bloomberg.
The news agency said the deal may be announced today (Friday) after a meeting of Mediaset’s board, which is scheduled for 5pm in Milan.
Under the proposed deal, Vivendi and Mediaset will reportedly acquire stakes of about 3.5 per cent in each other. The stake in Vivendi is valued at around €874m ($979.8m). Bloomberg added that as Vivendi’s market value is more than six times higher than Mediaset’s, the Italian company will make up the difference by granting Vivendi its 89 per cent stake in Mediaset Premium.
Spanish telecommunications company Telefónica, which owns about 11 per cent of Premium, will also sell its stake to Vivendi as part of the agreement, possibly for cash, Bloomberg added.
Mediaset Premium is a major sports broadcaster which shows coverage of Italy’s top football division, Serie A, as well as the Uefa Champions League.