PRISA finally closes the sale of 56% of Canal+ to Telefónica

The operation has been closed for an amount of 706.81 million euros, compared to the 750 million euros initially agreed due to the conditions imposed by the CNMC.

After receiving approval with conditions just a few days ago from the National Markets and Competition Commission (CNMC), Telefónica has finally announced the purchase of 56% of the Canal+ pay television platform from PRISA.

The operation has been closed for an amount of 706.81 million euros, compared to the 750 million euros initially agreed due to the conditions imposed by the CNMC. Among the limitations, the CNMC established that competitors will be able to access a maximum of 50% of the 'premium' channels that make up Telefónica's wholesale offer at prices that ensure "replicability" and avoid situations of "narrowing of margins."

In addition, Telefónica has communicated that depending on the amount that Canal+ finally collects from Mediapro, as a consequence of the award issued within the framework of the arbitration procedure initiated by said platform and the review of the adjustments contemplated in the contract, the final price of the sale will be adjusted.

From now on, Telefónica, which already had 44% of the capital of Canal+, will have 100% of the platform in its hands.

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Telefónica must limit the duration of its content acquisition contracts to three years and renounce preferential acquisition rights. For its part, the exclusive exploitation of the content acquired by the company is limited to two years and certain types of broadcast windows. Thus, for example, video-on-demand broadcasts of catalog movies and series will not have exclusivity.

Por otro lado, según las indicaciones de la CNMC, Telefónica no podrá adquirir derechos exclusivos de emisión que no vaya a explotar, si bien estas condiciones no se aplican a sus producciones propias. En el caso de los canales editados por terceros operadores, Telefónica no podrá adquirir derechos de emisión exclusiva de estos canales editados por terceros.