Telecom Italia Media and Airplus TV: sales of PPV Operations on the digital terrestrial platform finalized

12/01/2008 - 07:53 PM

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Telecom Italia Media and Air P TV Development AB (Airplus TV) implemented the agreement on the sale of the Digital Terrestrial Pay per View business from Telecom Italia Media to the Airplus TV’s Italian Division, as announced on October 17 last.

The key terms of the agreement are as follows:

  1. the sale to Airplus TV of APTV Srl, the company to which Telecom Italia Media transferred the business unit that comprises its former pay-per-view operations and staff, in return for the payment of €16.6 million, subject to subsequent adjustment;
  2. the execution of long-term digital terrestrial bandwidth capacity service agreements (14 Mbits) between the network operator Telecom Italia Media and Airplus TV enabling the latter to broadcast pay TV channels and pay-per-view content;
  3. the underwriting by TI Media of 9% of the capital stock of the Italian subsidiary of Airplus TV for consideration of €5 million.

By entering into this partnership agreement, Telecom Italia Media has achieved one of the key goals set in the Business Plan it presented in August of this year.

The agreement entered into with TI Media will permit the Italian division of Airplus TV to pursue its goal of achieving significant market shares driven by a wide range of new pay content, soon to be made available, that will expand and enrich digital terrestrial broadcasting in Italy.

The founders of Airplus TV have longstanding experience in digital terrestrial TV. The company’s management and investors include the founders and initial private investors in the successful Swedish pay-TV network, Boxer TV, in “PlusTV”, the Finnish pay-TV network that has achieved constant, rapid growth, and, most recently, in Dahlia Television SA in Spain.

Airplus TV will draw on the above experience in DTT pay TV to expand its presence on new European markets, particularly in Italy, during the transition from analog to digital TV technology.

Airplus TV’s investors include Investor Growth Capital, a fully owned subsidiary of Investor AB, Northern Europe’s largest listed industrial holding company, and its founding investors, Provider Venture Partners, 2TD Holding (Sweden) and Constellation Ventures (USA).