Telecom Italia Media and Cairo Communication: revision of the exclusive concession contract for advertising sales on the La7 channel

12/17/2010 - 02:57 PM

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The Telecom Italia Media Board of Directors chaired by the Deputy Chairman and Chief Executive Officer Giovanni Stella today remembered the President Professor Berardino Libonati, who suddenly passed away on 30 November.

The Board emphasised his qualities as prominent jurist along with his heightened human sensitivity.

Throughout his academic career Professor Libonati contributed to the making of modern company law and his scientific activity favoured a greater stability of company assets within our entrepreneurial system. His activity further supported the transition towards the liberalisation of key sectors of the national economy in privatisation processes.

Telecom Italia Media Board of Directors has agreed with Cairo Communication a revision to the exclusive concession contract for La7 advertising sales signed on 19 November 2008, which had a duration through 31 December 2011 and automatic renewal until 31 December 2014 subject to the achievement of set targets.

Specifically, TI Media and the concessionary have agreed upon non guaranteed annual advertising revenue targets (additional to the minimum annual advertising revenue) for 2011 and in case of renewal for the possible three years 2012-2014; such targets proportional to the achievement of annual growth targets of the given 3% for La7’s share.

Should the concessionary meet the additional advertising targets, or anyway pay to TI Media the corresponding fee it would be entitled to had such targets been met, it shall have the right to a renewal of the contract through 31 December 2019. In the absence of the above circumstances TI Media shall be entitled to terminate the contract.

In addition to the above, Telecom Italia Media and Cairo Communication have also renewed the concession contract for La7d until 2014 and have revised the advertising sale agreement for the TI Media web sites along the lines of the La7 concession agreement.

Milan, 17 December 2010