Telecom Italia Media and Viacom sign agreement for the sale of MTV Italia

07/04/2013 - 08:41 AM

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Telecom Italia Media and Viacom International Media Networks (VIMN), a division of Viacom Inc., today signed the agreement for the sale of the 51% stake of MTV Italia to Viacom.

Under the agreement, Telecom Italia Media shall receive a consideration of 10 million euro, that will be adjusted on working capital changes upon closing.  As part of the transaction, Telecom Italia Media committed itself –at closing date - to waive its financial receivables due at signing from MTV Italia, approximately 9.7 million euro.

The parties finally renewed a multi-year agreement between MTV Italia and TIMB for the supply of broadcasting capacity and services.

The closing of the operation, subjected to the receipt of the necessary authorization in accordance with the law and applicable regulation, is expected by the end of September 2013. 

The operation will impact Telecom Italia Media Group 2013 results both in terms of increase of profitability and in terms of net financial position reduction.

Upon completion of the transaction, VIMN will assume full editorial and operational control of all MTV Italy properties, including MTV, channel dedicated to entertainment for young adults, MTV Music, MTV Classic, MTV HITS  music channels, http://www.mtv.it/ and MTV Pubblicità, while Telecom Italia Media will focus on the broadcasting business.  

With the acquisition of MTV Italy, VIMN will grow its portfolio of owned and operated television networks in Italy to seven in total, including Nickelodeon, Nick Jr. and Comedy Central.

Rome, 4 July 2013