Téléfonica gets 21% stake in satellite TV firm

[grover]

Spain's Téléfonica has acquired a 21% stake in Digital Plus, satellite TV firm. The deal is said to be worth USD709m.

[awkwardsilence]

Hmmmn... that's quite a huge deal.

[Beamer]

Wasn't Vivendi Universal a part of this deal?

[cockroach]

No. Vivendi and Telefonica were in talks with Prisa, the owner of Digital Plus. But Digital Plus didn't agree to the joint bid.

[checkered]

Well, i am not surprised. Digital Plus has around 2 million paying subscribers. They stand to have revenues of around US$100 million each month. So that US$709 million is just a piece of cake for them.

[babydengue]

Well, i am not surprised. Digital Plus has around 2 million paying subscribers. They stand to have revenues of around US$100 million each month. So that US$709 million is just a piece of cake for them.

makes you wonder, really if they are earning that much, how come they were put on sale?

[cockroach]

You have to take note that it's not the whole company that was sold. Just 21%.

[vanreek]

I would agree with babydengue though, it seems dubious that anybody would want to sell a profitable company that earns more than US$100 million per month.

[Jennifer_Amistad]

I think you have to understand that there are a lot of things that the money could be used for. It could be for capital expenditures or production. So it's really not surprising.