Telefónica takes $700m Digital+ stake

Spanish telecoms giant Telefónica has agreed a €470m (US$708.7m) deal with media group Prisa to buy 21% of Spain’s largest satellite platform, Digital+.

The deal, which is subject to regulatory approval, will see Telefónica paying Prisa €240m and cancelling out €230m of debt. Prisa has been selling assets in a bid to pay off some of its estimated €5bn debt pile.

The sale comes after reports last year suggested Prisa has received initial offers in the region of US$4bn for Digital+, with BSkyB and Vivendi among the names linked to the company. More recently, talk had been of a joint bid by Telefónica and Vivendi for the entire pay-TV platform.

Telefonica will have the right to appoint two members to the board of Digital+. The two companies have also agreed to explore collaboration in developing audiovisual and other ventures in Spain.