Boston, MA 06\/20\/2014 (wallstreetpr) \u2013 Telecom giant, Telefonica S.A. (ADR) (NYSE:TEF)<\/b>, is pushing forward with its attempt to gain full control of Spanish Pay-Tv, DTS, with the acquisition of Mediaset. Earlier in the month, the company announced it had reached an agreement with Promotora de Informaciones, S.A for the acquisition of 56% stake in the latter\u2019s DTS stake for $1.017 billion.<\/p>\n
Telefonica Stake In DTS To Reach 78%<\/b><\/p>\n
Mediaset\u2019s deal is expected to increase Telefonica S.A. (ADR) (NYSE:TEF) stake in DTS to 78% making it the outright majority shareholder. The major stumbling block is the fact that the deal has yet to receive anti-trust approval, as well as the green signal from PRISA\u2019s sponsoring banks. Mediaset\u2019s still stands to benefit from the transaction even if Telefonica becomes the owner of DTS.<\/p>\n
Telefonica S.A. (ADR) (NYSE:TEF) is expected to pay $13.56 million to Mediaset\u2019s if the deal with PRISA is approved. Mediaset is also entitled to $27.12 million based on an increase of DTS subscriber base over the next four years following full closure of the PRISA transaction. The Italian mass media Mediaset will receive a further $40.68 million subject to acceptance of the offer by Telefonica and the surrender of the right to acquire PRISA\u2019s stake in DTS. Successful closure of the deal and future performance of DTS could see Mediaset walking away with up to $355 million.<\/p>\n
Telefonica Shift Of Focus To Pay-Tv<\/b><\/p>\n
Telefonica S.A. (ADR) (NYSE:TEF) continues to shift its focus in a bid of focusing on Pay-Tv business as a way of offsetting traditional access lien loss. The company has already seen its Pay-Tv subscriber base increase by 8% on a year over, to 3.6 million. Strong performances from home operations, as well as its subsidiary in Brazil Telefonica Brazil, continues to facilitate impressive results.<\/p>\n
Last month the company announced it had teamed up with software expert Red Hat and Intel Corporation (NASDAQ:INTC) <\/b>with a view of developing network function Virtualization service. For 2014, the company has announced it plans to focus on increasing network capacity to support data traffic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/20\/2014 (wallstreetpr) \u2013 Telecom giant, Telefonica S.A. (ADR) (NYSE:TEF), is pushing forward with its attempt to gain full control of Spanish Pay-Tv, DTS, […]<\/p>\n","protected":false},"author":32,"featured_media":26516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[596,1900,597,2063,7478,4674],"stock_ticker":[],"class_list":["post-26514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-intel-corporation","tag-intel-corporation-nasdaqintc","tag-nasdaqintc","tag-nysetef","tag-telefonica-s-a-adr","tag-telefonica-s-a-adr-nysetef","entry"],"acf":[],"yoast_head":"\n