French media company, Vivendi announced today that it has entered into an important binding strategic and industrial agreement with Mediaset, a leading player in free and pay-television services in Italy and Spain.
The two companies have agreed to develop an industrial partnership at international level to, on one hand, jointly develop various initiatives for the production and distribution of ambitious audiovisual content and, on the other, to create a global over-the-top (OTT) television delivery platform.
Under the terms of the agreement, 3.5% of Vivendi’s share capital will be exchanged for 3.5% of Mediaset’s share capital and 100% of the share capital of the Mediaset Premium pay-television company.
With Mediaset Premium, Vivendi greatly expands its presence in the European pay-television segment, increasing its individual subscriber base to over 13 million in an Italian market offering important growth opportunities. The agreement with Mediaset confirms Vivendi’s intention to build strong positions in Southern Europe, a market that shares a similar Latin culture and roots. Mediaset’s significant presence in Italy and Spain, through general entertainment and thematic channels (free and pay), represents an important stepping stone toward achieving this goal.