Altice agrees $440m deal to buy stake in content firm Media Capital

James Pearce
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Altice will acquire Prisa's 94.7% shareholding in the Portuguese operator as it looks to expand its content portfolio

Dutch operator Altice has struck a deal to buy a 94.7% stake in Portuguese TV and radio firm Media Capital from Prisa for €440 million.

Media Capital owns Plural, Portugal’s largest content producer, and generated €174 million of revenue and €41.5 million in EBITDA in 2016. It also owns the leading free-to-air TV broadcasting channel in the country, as well as the second largest radio group.

Altice said it plans to launch a mandatory takeover offer for the remaining 5.3% of the company not owned by Spanish firm Prisa.

Altice CEO Michel Combes said: “We are extremely excited about the acquisition of Media Capital.It is a unique opportunity to invest more capital in a market which has been our home for many years.

“We want to capture the many growth opportunities Media Capital offers not just in Portugal but also internationally based on an ambitious agenda focused on more digital, more content and more innovation.

“This strategy will bring benefits to all Portuguese media consumers while strengthening the Portuguese media landscape in the context of an increasingly global competition.”

It is the latest example of a telecoms operator pushing into the content space in order to offer converged packages. Altice is expected to boost content offered by its Portugal Telecom unit, whilst also exporting content to other units in France, Israel and the US.

In the US, AT&T is buying Time Warner, giving it access to huge amounts of content, whilst the likes of BT in the UK have all made strides in offering TV services in the hopes of selling converged packages including fixed, mobile, broadband and content.