Vivendi has formed a strategic and industrial partnership with Mediaset.
The deal, which is expected to be completed in the coming months, will see Vivendi acquire the entire share capital of Mediaset Premium pay-TV company, as well as 3.5 per cent stake in Mediaset.
In exchange, Mediaset will take on 3.5 per cent of Vivendi.
The partnership will also see the companies look to launch a global OTT delivery platform, as well as ‘jointly develop various initiatives’ for the production and distribution of audiovisual content.
The move, which follows Vivendi’s launch of exclusive mobile series platform Studio+ last week, will see Vivendi expand its presence in European pay-TV markets.
“The deal between Vivendi and Mediaset is a potential game changer,” said Paolo Pescatore (pictured), director of multi-play and media at CCS Insight.
“Sky’s move to consolidate its position in Europe has arguably triggered this move as the media industry continues to see a wave of corporate activity.
“Similarly, pay-TV providers have come under significant competitive pressure with the arrival of OTT providers like Netflix and telcos adding TV and video services as part of a multi-play offer.
This move will no doubt spark more consolidation not only in media, but among telcos as the European market driven by convergence moves towards a handful of key players who own assets in connectivity and content.”