Spanish media company PRISA accepts Telefonica’s $1 billion offer for pay TV unit

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MADRID – Spanish media company PRISA says it has accepted a 725 million-euro ($1 billion) bid by telecommunications company Telefonica for a controlling stake in leading pay-per-view TV operator Digital Plus.

PRISA, which owns daily El Pais and the Cadena SER radio network, said its board agreed to sell its 56 per cent share following the offer from Telefonica SA this week.

Telefonica already owns 22 per cent of Digital Plus, which has many of the rights for broadcasting Spanish and European soccer matches.

Promotora de Informaciones S.A., or PRISA, has a debt burden of some 3 billion euros and has been looking to offload several of its operations in recent months.

PRISA’s shares dropped 2 per cent to 0.4 euros in Madrid on Thursday while Telefonica’s rose 0.6 per cent to 11.9 euros.

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