Mediterráneo Mediaset España Group increases its sales to platforms by 50%

Coinciding with the general increase in the consumption of audiovisual content caused by the State of Alarm, sales of Mediterranean Mediaset Spain Group platforms have increased by 50% between the first and second quarters of the year.

Mediaset Spain expects to quintuple during the first half of 2020 the sales of the first half of 2019 to the main platforms with which it negotiates from its privileged position as an independent producer.

In just one year of activity, Mediaset España’s business has expanded through the sale, production and distribution of content to third parties, reaching agreements with large platforms such as Amazon Prime Video, Netflix and HBO, and OTT service companies such as Movistar +, Vodafone, Viacom/CBS, Orange, Euskaltel, Direct TV and América Móvil, among others, with which Mediterráneo Mediaset España Group has contributed to Mediaset España’s ‘Other Income’ heading almost doubling during the first quarter of 2020 compared to the same period in 2019, to €35.4M.

The success of Mediaset España’s fiction invades the platforms

Mediaset España’s series are currently the ones that enjoy the greatest audience success: four of them (‘La que se avecina’, ‘El Pueblo’, ‘Vivir sin permission’ and ‘Lejos de ti’) are among the five most watched national series of the season in its free-to-air distribution.

Amazon Prime Video has exclusively premiered Season 1 and Season 2 of ‘El Pueblo’; the new chapters of ‘La que se avecina’ together with the previous seasons of the series, ‘Mothers: love and life’, ‘Caronte’ and ‘Disappeared’. The Serie’. In addition, it has Season 1 of ‘Ladies of (h)AMPA’. The premiere fictions can be broadcast openly on Mediaset Spain once the Amazon Prime Video exclusivity window is over.

Also, Netflix offers in its catalog the series ‘Live without permission’, which was in the Top Ten of the most watched on the platform in our country.

For HBOMediterráneo Mediaset España Group has produced the series ‘Patria’ through Alea Media, based on the best seller literary work of Fernando Aramburu.

Along with fiction, Mediterráneo has reached an exclusive production agreement for Amazon Prime Video of the premiere docuseries ‘De la vida al plato’ and ‘La familia del Baloncesto Español’.


Cursed merger: the war with Vivendi forces Berlusconi to buy his 29% stake in Mediaset

A new challenge of the last meeting of Mediaset Spain moves away again the start-up of the new merged company.

Silvio Berlusconi, founder and president of Mediaset.

When on June 7, 2019 Mediaset announced the merger of its businesses in Italy and Spain to form a new operator, mediaforeurope, He never imagined that a year later they would still be immersed in a tangle of legal messes, contested boards and a project completely dry docked.

In the same way, Silvio Berlusconipattern Mediasetnever imagined that his dream of leading audiovisual production and broadcasting at the European level it was going to remain in a judicial battle that seems to have no solution and that on Tuesday it had a new setback. He never expected that live He would declare a frontal war on them and use all his legal arsenal to stop the operation.

By reporting the merger, Mediaset spoke of business development possibilities “difficult to achieve separately” and to “increase investments in Italy and Spain”. In addition, “all the synergies already foreseen could grow exponentially with the adhesion of a third or fourth country to the project”.

Mediaset and Berlusconi drew up a trans-European project with interests also in Germany through ProSiebenSat1, the main free-to-air private television network in this country and of which they already control 20%. The company would have a tax base in Italybut would be incorporated in the Netherlands, although it would continue to be listed on Italy and in Spain.

But none of this has been possible. A year later they still cannot approve even the first stage of the merger: that of the shareholders’ meeting. livedshareholder of Mediaset Italy and Spainhas become its worst enemy and has blocked the operation in every possible way, which at this point has no sign of coming to fruition if an out-of-court solution is not reached.

Vivendi’s options in Spain

The French giant, run by media tycoon Vincent Bolloreopposes the merger saying that it strengthens the control of the main shareholder of Mediasetthe family of the former Italian Prime Minister Silvio Berlusconi.

For his part, from Mediaset indicates that lived is a potential competitor in the new scenario of Media For Europe (MFE) so you don’t want to create a direct rival.

Fininvestof the family Berlusconiowns 50% of the shares of Mediaset Italy while lived it has 28.8%, but only 9.9% of the voting rights. The rest correspond to a trust of the French group that could not vote in the approval of the merger in the Italian board. In the case of Spain, Mediaset has 52% and Vivendi 1% bought little at the end of last year.

Vivendi’s strategy involves total blockade, according to some market sources, since it wants to boycott an operation that could put its future growth in Europe at risk. For this reason, it has successively challenged all the agreements of the Mediaset Shareholders’ Meetingsboth in Spain and in Italy.

In the Spanish case, Mediaset launched a new Shareholders’ Meeting to modify certain aspects that could justify Vivendi’s veto, but the French operator has returned -for the second time- to challenge the agreements.

Peninsula and Mediobanca

Eight months in which the negotiations have also taken place in private, but without reaching any type of agreement between the parties. This leads to a single solution according to the market sources consulted: that Mediaset or some close group buys 29% of Vivendi to remove them from the equation before starting the merger.

According to the original project, each Mediaset shareholder will receive one share of the new company for each share of the current companies and shareholders that are not Mediaset 2.33 shares of the new company. On Tuesday, Mediaset Italia shares closed at 1.74 euros and those of Spain at 3.64 euros, half of what they were trading for a year ago.

The current capitalization of Mediaset slightly exceeds 2,000 million euros, so a purchase – at current market prices – should be close to 700 million euros. It is clear that any out-of-court settlement with Vivendi should go through withdrawing all challenges and appeals in court, but also include a significant premium for this amount.

In September of last year, Peninsulathe fund led by Borja Prado and former bankers of Midbank, agreed to allocate a reserve fund of 1,000 million euros to facilitate the merger and buy the participation of those who did not agree with the operation. However, the operation had a limit of 5% of the total capital of Mediaset.

In this sense, sources consulted by Invertia indicate that Mediaset is still looking for a partner who can buy the Vivendi package that forces them to sign peace. However, the coronavirus and confinement paralyzed any movement. That is why movements are not ruled out between now and the end of the year, in order to unblock the operation and without the limitations of the state of alarm.

Sánchez proposes as president of the CNMC the lawyer who defended the duopoly for Mediaset

At the moment she is an advisor to the Cabinet of the Presidency of the Government in Moncloa, personally signed by Iván Redondo.

Cani Fernández, who will be proposed as the new president of the CNMC, in a file image.

Pedro Sanchez will propose to Cuts the designation of Cani Fernandez as the new president of the National Markets and Competition Commission (CNMC) to replace Jose Maria Marin Quemadawhose mandate expired in September and whose renewal was paralyzed by the last elections, the formation of Government and the coronavirus pandemic.

The sources consulted by this newspaper indicate that the objective of Moncloa is to take this Tuesday to Minister council the renewal of the five directors whose term of office has expired in the CNMCincluding the president Burnt Marin.

Regarding the experience of the future president, this well-known lawyer was the one who defended Mediaset -in his stage of Quatrecasas– during the investigation that confronted the two television channels, Atresmedia and Mediasetagainst the CNMC itself for anti-competitive conduct in the audiovisual advertising market.

The sources consulted by this newspaper indicate that this situation would not generate incompatibility as it is a closed case – it was ruled in November of last year with a fine of 77.1 million euros for Atresmedia and Mediaset-, but that could generate future inhibitions in case it is necessary to continue with the appeals that have been presented to the ruling.

Cani Fernandez (57 years old) is a lawyer expert in community law, historical of the legal office Quatrecasas where he dealt with Competition matters and from where he led the defense of more than a year of Mediaset Before the aforementioned investigation of the CNMC by advertising duopoly.

council renewal

According to The country, who brought forward the appointment, last February he requested a leave of absence to join the Cabinet of the Presidency of the Government in Moncloa at the hands of the presidential adviser Ivan Round. With Fernández’s proposal, the renewal process of the highest competition body, pending for more than six months, begins.

In addition to Marín Quemada, the vice president, María Fernández, and three members will be replaced: Josep Maria Guinart, Clotilde de la Higuera and Benigno Valdesall of them with their charges expired since the beginning of this course.

The Executive will renew five of its ten members appointed in 2013 by Mariano Rajoy in the first council of this body created in that year and which unified all the competition bodies that were operating in the Spanish market at that time.

All these charges must be ratified by the Parliament, so they must respond to a delicate balance between political parties.

Fernandez’s experience

Cani Fernandez is a member of Women in a Legal Worldand was a partner in the Competition and EU area of ​​the firm Quatrecasas. He has extensive experience in mergers and acquisitions of companies, competition and antidumping, telecommunications and energy, as well as community litigation. The sources consulted indicate that she is one of the lawyers with the greatest knowledge of Competition in the entire EU.

From 2003 to 2018 it was Director of Competition and EU and director of the Cuatrecasas office in Brussels. She was a lawyerreferee) of Court of Justice of the European Union from 1994 to 1997. From 2012 to 2014 it was co-chair (co-chair) of Antitrust Committee of the International Bar Association (IBA) and from 2016 to 2018, vice president of the Economics Committee of the antitrust section of the American Bar Association (ABA).

He is also a member of IBA LPD Council Y non-governmental advisor (NGA) of the European Commission and the National Commission of Markets and Competition (CNMC) before the International Competition Network (ICN).

Vivendi again challenges the merger of Mediaset and paralyzes (again) the union with Italy

They challenge the social agreements adopted by the Extraordinary General Meeting of Mediaset España held on February 5.

New setback for the merger of Mediaset Spain with its headquarters in Italy. The operator has communicated this Tuesday to the Spanish CNMV that it has received a demand for livedcontesting the social agreements adopted by the Extraordinary General Meeting of Mediaset Spain held on February 5, 2020.

The agreements of this meeting precisely corrected some formal aspects of the merger proposed a year ago and that had previously also been contested by the French audiovisual company itself.

This challenge returns to stop the clock of the merger and adds a new element in the judicial war in which the two companies have embarked. lived has requested to paralyze the merger with precautionary measures, which will be seen in court on July 22.

In June of last year, Mediaset approved create a pan-European audiovisual giant by integrating its companies in Italy and Spain under the new name of Mediaforeurope. The company will have a tax base in Italy, but will be incorporated in the Netherlands, although it will continue to be listed in Italy and Spain.

Mess with Vivendi

Mediaset indicated that the union of its two companies “opens business development possibilities difficult to achieve separately and will surely allow increased investment in Italy and Spain. In addition, all the synergies already foreseen could grow exponentially with the adhesion of a third or fourth country to the project”.

However, the integration is completely paralyzed by the successive challenges of Vivendi, shareholder of Mediaset Italia and minority shareholder in Spain.

The French giant, run by media tycoon Vincent Bolloreopposes the merger saying that it strengthens the control of the main shareholder of Mediasetthe family of the former Italian Prime Minister Silvio Berlusconi.

For his part, from Mediaset indicates that lived is a potential competitor in the new scenario of Media For Europe (MFE) so you don’t want to create a direct rival.

power struggle

Fininvestof the family Berlusconiowns 50% of the shares of Mediaset Italy while lived it has 28.8%, but only 9.9% of the voting rights. The rest correspond to a trust of the French group that could not vote in the approval of the merger in the Italian board.

To complement the lock on Italy, Vivendi decided to buy a 1% stake in Mediaset Spain in the summer, which gave him the legal backing to challenge the board’s agreements and block the pan-European merger.

In this way, the process has become entrenched in the Spanish and Italian courts -and even more so with this new blockade- after almost six months in which an amicable solution and an agreement that allows the demands to be withdrawn have been tried without success. It is the only possibility of carrying out a merger that seemed safe, but now seems almost impossible.

Mediaset indicated that the union of its two companies “opens business development possibilities difficult to achieve separately and will surely allow increased investment in Italy and Spain. In addition, all the synergies already foreseen could grow exponentially with the adhesion of a third or fourth country to the project”.

However, the integration is completely paralyzed by the successive challenges of Vivendi, shareholder of Mediaset Italia and minority shareholder in Spain.

The French giant, run by media tycoon Vincent Bolloreopposes the merger saying that it strengthens the control of the main shareholder of Mediasetthe family of the former Italian Prime Minister Silvio Berlusconi.

For his part, from Mediaset indicates that lived is a potential competitor in the new scenario of Media For Europe (MFE) so you don’t want to create a direct rival.

power struggle

Fininvestof the family Berlusconiowns 50% of the shares of Mediaset Italy while lived it has 28.8%, but only 9.9% of the voting rights. The rest correspond to a trust of the French group that could not vote in the approval of the merger in the Italian board.

To complement the lock on Italy, Vivendi decided to buy a 1% stake in Mediaset Spain in the summer, which gave him the legal backing to challenge the board’s agreements and block the pan-European merger.

In this way, the process has become entrenched in the Spanish and Italian courts -and even more so with this new blockade- after almost six months in which an amicable solution and an agreement that allows the demands to be withdrawn have been tried without success. It is the only possibility of carrying out a merger that seemed safe, but now seems almost impossible.

A court says that Vivendi acted as a competitor and not as a partner in the Mediaset case

The Spanish group considers that it is a first step to unblock the merger of its Spanish and Italian audiovisual businesses.

Headquarters of Mediaset Spain.

A court of milan has rejected the appeals filed by Vivendi and Simon Fiduciaria against the ruling issued by the same Court in the first instance on February 3. According to the magistrates, the French multinational acted not as a partner but as a competitor, by opposing the project Mediaset MFE: “Vivendi is objectively putting itself in a situation of potential conflict with Mediaset in terms of expansion in the European media markets.

As indicated by Mediaset in a note sent to the CNMC, this ruling, “which ends the legal dispute in Italy for the time being, is a crucial step for the launch of MediaForEuropethe merger between the Italian and Spanish businesses of the group presented exactly one year ago.

Mediaset and its owner Silvio Berlusconi drew up a trans-European project with interests also in Germany through ProSiebenSat1, the main free-to-air private television network in this country and of which they already control 20%. The company would have a tax base in Italybut would be incorporated in the Netherlands, although it would continue to be listed on Italy and in Spain.

But none of this has been possible. Twelve months later they still cannot approve even the first stage of the merger: that of the shareholders’ meeting. livedshareholder of Mediaset Italy and Spainhas become its worst enemy and has blocked the operation in every possible way, which at this point has no sign of coming to fruition if an out-of-court solution is not reached.

“Economic and commercial logic”

In this sense, after the ruling in Italy, a precedent is set in Spain, where the merger is also blocked in the Shareholders Meeting and where Vivendi bought a small stake precisely to be able to block the deal in the two countries where it had to be approved.

In this way, the judgment of the justice of Milan indicate that “considering the position of the two companies, it is easy to recognize that lived could very well find strategies to limit and reduce the activities of Mediasetbased on their very broad interests.

Always according to the magistrates, contrary to what he says livedthe MFE project was received positively by the market: “The claim by the plaintiffs that the transaction in question was unanimously criticized by the independent advisers is completely unfounded”.

Finally, the court of milan also disproves lived Regarding the absence of industrial value: “The merger operation has a substantial economic and commercial logic”, reads the operative part, “and constitutes an important strategic objective for the Mediaset Group in order to become a major player in the European communication and media market”.