The planned formation of a dominant satellite television group in Italy looks set to go ahead without regulatory obstruction, according to an article in the Financial Times today.
It is the merger of News Corp’s Stream division with Telepiù, the pay-TV arm of Vivendi Universal, that will create the country’s largest satellite operator – Sky Italia. At the end of last year the European Commission began a detailed investigation into the merger on the grounds that it may be monopolistic (see
EC To Investigate Telepiu Takeover).
Rupert Murdoch, chairman of News Corp, has already offered to make concessions in order to allow the €900 million deal to go ahead (see Murdoch Makes Concessions On Telepi). The FT says that most of the concerns that were raised in Brussels have already been addressed in Murdoch’s proposals, although a few extra measures may need to be taken.
Under the terms of the deal, Vivendi Universal will receive a €470 million cash payment and News Corp will also absorb €423 million of debt at Telepiù.
