Telecom Italia Media will receive €10 million, adjusted for working capital on closing but is effectively giving it away; as part of the transaction, Telecom Italia Media writes off debts from MTV Italia, of approximately €9.7 million.
The parties have renewed a multi-year agreement between MTV Italia and TIMB for the supply of broadcasting capacity and services. The deal will impact Telecom Italia Media 2013 results with an increase of profitability.
Upon completion of the transaction, VIMN will assume full editorial and operational control of all MTV Italy properties, including MTV, channel dedicated to entertainment for young adults, MTV Music, MTV Classic, MTV HITS music channels, www.MTV.it and MTV Pubblicità, while Telecom Italia Media will focus on the broadcasting business.
With the acquisition of MTV Italy, VIMN will grow its portfolio of owned and operated television networks in Italy to seven in total, including Nickelodeon, Nick Jr. and Comedy Central.