Telefonica becomes shareholder of Grupo Prisa

Telefónica has reached an agreement with Spain’s media group Grupo Prisa for which the former undertakes to subscribe convertible bonds worth €100 million in the media group. Prisa owns substantial media assets in Latin America and the U.,S. Hispanic market (including Prisa radio and broadcaster V-Me). 

In addition, Prisa has signed an agreement with La Caixa, Banco Santander and HSBC to convert part of its debt into shares for €334 million (US $417 million).

Both agreements are subject to a vote at Prisa’s next Annual General Meeting to be held on June 30.
Telefonica will acquire 97 million Prisa shares, giving it an 8 percent stake in the media company, although this stake will shrink to 5-6 percent when other shareholders convert a series of warrants.

Telefonica's move will help strengthen its strategic alliance with Prisa in broadcasting and could help Prisa's Digital+ channel recover rights to broadcast lucrative Spanish soccer matches, BPI analysts said in a note to clients.

Prisa has been suffering from falling advertising revenue in Spain and Portugal and high financing costs and posted an 8 million euro loss in the first quarter.


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Marcos Baer @MarcosBaer

Marcos oversees editorial and sales. He is based in Portada's NYC headquarters. Prior to launching Portada in 2003, Marcos worked in both the media and finance sectors. He occupied leading roles at the Spanish edition of The Wall Street Journal, in Spain’s newspaper Cinco Dias and at SwissRe. He is an MBA, and a CFA. Marcos is a print junkie and also loves all things digital media. He also is passionate about everything related to New York City and loves to play tennis.

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