Portugal Telecom is investing €21 million to take a 25 per cent stake in a TV and multimedia sports platform
The joint-venture will combine Sport TV Portugal, Sportinveste Multimédia (SIMM) and Publicidade de Portugal e Televisão (PPTV) into a single entity that will manage sports content on a variety of platforms, including pay-TV, mobile and online.
Portugal Telecom will contribute its 50 per cent stake in stake in SIMM and invest, through a rights issue in Sport TV, a net amount of up to €21 million. Following these transactions, Sport TV, which will incorporate PPTV and SIMM, will be owned by Sportinveste (50 per cent), PT (25 per cent) and Zon Multimedia (25 per cent).
To consolidate these operations, Zon Multimedia will reduce its shareholding to 25 per cent in Sport TV, receiving a cash inflow of around €46 million.
Portuguese pay-TV broadcaster Sport TV is currently equally owned by Sportinveste and Zon. Sports TV rights holder PPTV is currently100 per cent owned by Sportinveste. The core business of SIMM, currently equally owned by Portugal Telecom and Sportinveste, is the production and development of sport contents through multimedia platforms.
The deal is conditional to the approval by Portugal’s Competition Authority (AdC) and the conclusion of Sport TV’s refinancing.
In a related development, Sport TV has secured the TV rights of the Portuguese football leagues until the 2015/2016 season. The agreement was signed with PPTV, which owns the TV rights until 2017/2018.
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