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Problems for Cuatro, Telecinco merger
The planned merger in Spain of Sogecable's Cuatro and Mediaset's Telecinco may have hit problems. The National Competition Commission (CNC) has seen obstacles for competition if these companies definitively merge.
The Commission announced that following receiving the second phase of the documents of Telecinco and Cuatro and of Prisa, Telefónica, Telecinco and Digital+, a deep analysis of the merger operations among these companies is necessary.
The two operations comprise the merger of Cuatro and Telecinco and the purchase of Sogecable's satellite pay-TV operator Digital+ by Sogecable's owner media group Prisa, Telefónica and Telecinco.
The report of the first phase mentioned the possible lack of interest by Prisa, Telefónica and Telecinco in keeping competing in the pay-TV market any longer. Besides the study highlights these companies "could join their competitive strategies in the pay-TV market from multiple angles" so this could affect minor markets and also the advertising TV market.
After analyzing the information and the possible allegations by the market's protagonists the CNC will then have two months to give green light or ban these merging operations.
The planned merger in Spain of Sogecable's Cuatro and Mediaset's Telecinco may have hit problems. The National Competition Commission (CNC) has seen obstacles for competition if these companies definitively merge.
The Commission announced that following receiving the second phase of the documents of Telecinco and Cuatro and of Prisa, Telefónica, Telecinco and Digital+, a deep analysis of the merger operations among these companies is necessary.
The two operations comprise the merger of Cuatro and Telecinco and the purchase of Sogecable's satellite pay-TV operator Digital+ by Sogecable's owner media group Prisa, Telefónica and Telecinco.
The report of the first phase mentioned the possible lack of interest by Prisa, Telefónica and Telecinco in keeping competing in the pay-TV market any longer. Besides the study highlights these companies "could join their competitive strategies in the pay-TV market from multiple angles" so this could affect minor markets and also the advertising TV market.
After analyzing the information and the possible allegations by the market's protagonists the CNC will then have two months to give green light or ban these merging operations.