Prisa will invest between this year and the next a total of $S 37.8 million for a 51% stake in V-me. The first step is to allocate $S 3.96 million so that Sogecable, a Prisa controlled company, increases its stake in the U.S. Hispanic broadcaster from 12% to 23%.
Under the agreement, Sogecable is committed to provide the additional $9.8 million in 2010 to reach a 35% stake. In 2011 it will provide an additional $23.8 million in 2011. $18.84 million dollars of them in cash and $4.92 million dollars through participation in media rights, which will turn Prisa the owner of 51% of the company.
Prisa had announced its intention to gain control of the company when it took 12% of V-me Media in October 2009. The agreement now states that Prisa V-me will provide content in order the"accelerate development" of the U.S. Hispanic market.
Despite the acquisition, Prisa is continuing with its plans to pull back from the audiovisual business in Spain and Portugal. The company's management has notified the Spanish Security and Exchange Commission (CNMV) of the sale of part of its shares in Portugal's Media Capital. At the same time the company is selling 44% of its pay-TV business in Spain.