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Telefonica takes Digital+ stake

As expected, Spanish media and telecoms giant Telefonica has mopped up a 21% stake in Spanish pay-TV operator Digital+ for €470m ($707.5m).

The deal is subject to regulator approvals but the end result is that Telefonica paying €240m to Prisa, and also wiping out €230m of debt from Prisa to Telefonica. However, the deal values Digital+ at just €2.35bn, and well down on last year's much talked-about valuation of around €4bn, and when Prisa turned down a joint bid made by Telefonica and France's Vivendi to buy Digital+.

The two companies have also signed an agreement to explore possible collaboration in developing audiovisual and other businesses in Spain.

This is good news for Prisa since the country's main media group has a debt of €4.8bn. And for Telefónica it means it keeps out at least one new rival player (Vivendi) into Spain's pay-TV market
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