Vivendi Purchases 15% Stake in Telecom Italia

Published Date : Jun 26, 2015

Wednesday's move of Vivendi to grab majority of shares in Italian telco Telecom Italia with a stake of 15% is starting the speculation that the Paris-based media and substance conglom is leaving on an expansionist course, meeting telcos and substance in an initial move toward turning into a dish European pay-TV powerhouse and the main player ready to outgun Netflix as it takes off in mainland Europe. 

In an announcement Vivendi, which involves skillet European generation and dispersion smaller than usual major Studiocanal, Gallic pay TV administrator Canal Plus, and Universal Music, said it had spent more than US$1 billion raising its starting 1.9% stake in Telecom Italia, which is Italy's top landline, cellular telephone and broadband administrator, to 6.7%. 

That is on top of the 8.2% lump of Telecom Italia Vivendi had gotten from Spain's Telefonica as a component of a consent to offer the Spanish telco its Brazilian unit GVT a year ago. That arrangement additionally gave Vivendi substance access to Telefonica's pay TV pipeline in Spain, comprising of Canal Plus Espana, the greatest pay TV stage of Spain. Studiocanal possesses what is viewed as the third-biggest film library on the planet. 

In ahead of schedule June Netflix reported arrangements to take off in Italy, Spain and Portugal in October in the wake of appearing in fall 2014 in Germany, France, Luxembourg, Austria and Switzerland. On Thursday, the chief executive of Vivendi, Mr. Arnaud de Puyfontaine did not preclude that Vivendi is expanding its stake in Telecom Italia stake. 

In Italy Telecom Italia as of now has a broadband circulation manage the Sky paybox of the Murdoch family and a Mediaset Premium of Silvio Berlusconi is on the horizon. All the more fundamentally, bits of gossip are presently whirling in Italy and crosswise over Europe that the following move by Vivendi, headed by Gallic uber-rich person Vincent Bolloré, will be to purchase up Murdoch's skillet European Sky paybox, which works in the U.K., Ireland, Italy and Germany, furthermore gobble up Mediaset Premium. Reports of casual talks in the middle of Bollore and the Murdochs sent Sky shares soaring recently.