Advanced Television

Telefonica / Vivendi 'variable' bid for Digital+

April 2, 2009

The joint-venture of Telefónica and Vivendi has tabled another bid for Sogecable’s satellite pay-TV operator Digital+ in the long running sale saga. The amount eventually paid will reflect Digital's future EBITDA performance.

For last year Digital+ had EBITDA of E367 million, 10% up on the previous year. At the same time it lost 35,000 subscribers. Digital+ also has problems with the rights to the La Liga soccer league. LaSexta’s Mediapro won the contract but Digital+ has reported the deal to competition authorities and the company is now waiting for the tribunal’s response, but it is unlikely before the end of the year.

Financial press suggest the the joint-venture has offered around E2 billion, about half Prisa's original asking price.

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