Mediaset: shares rise after reaching Sky Italia deal
(CercleFinance.com) - Shares of Italy's Mediaset are up over 5% on Tuesday after the broadcaster reached an agreement on content and channels with Sky Italia, the Italian satellite unit of Rupert Murdoch's Sky, saying the deal would boost revenues.
Under the terms of the deal, Mediaset premium's cinema and series channels will become available for Sky Italia subscribers, generating a positive impact on Mediaset's advertising revenues.
In addition, both broadcasters will start a cooperation that will extend to Sky Italia the use of Mediaset's premium pay TV offers on digital terrestrial.
"Overall, today's agreement will enable Mediaset to become a content provider on all platforms, including satellite, and to create additional value from premium pay tv platform," the group said.
As a result, analysts at Berenberg have upgraded their rating on Mediaset from "hold" to "buy" and have raised their target price for the share to 3.8 euros from 3.2 euros, citing an "Easter surprise."
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Under the terms of the deal, Mediaset premium's cinema and series channels will become available for Sky Italia subscribers, generating a positive impact on Mediaset's advertising revenues.
In addition, both broadcasters will start a cooperation that will extend to Sky Italia the use of Mediaset's premium pay TV offers on digital terrestrial.
"Overall, today's agreement will enable Mediaset to become a content provider on all platforms, including satellite, and to create additional value from premium pay tv platform," the group said.
As a result, analysts at Berenberg have upgraded their rating on Mediaset from "hold" to "buy" and have raised their target price for the share to 3.8 euros from 3.2 euros, citing an "Easter surprise."
Copyright (c) 2018 CercleFinance.com. All rights reserved.