Contact:
Astrid Nolte
Phone: + 43 - 1 - 811 40 - 319
E-Mail: editor@newsfox.com
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Brussels (pte016/13.02.2003/11:57) - Rupert Murdoch's plans to take over the Italian pay TV station Telepiu through News Corp http://www.newscorp.com are under close scrutiny by the European Antitrust Commission.
Commissioner Mario Monti has put Murdoch under pressure to agree to a list of conditions before going forward with the takeover, as reported by the Financial Times (FT). The deal's worth is estimated at USD 893 million.
By taking over the subscriber channel Telepiu, which currently belongs to Vivendi Universal, and merging with Pay TV Stream, Murdoch would secure a monopoly on the Italian pay TV market. Rivals are concerned that he might use his position to force competitors and other show providers out of the business. They are demanding guarantees that the new station uphold existing contractual agreements with programming and film producers - neither the duration nor the amount of the agreements should be allowed to change.
In spite of objections by rivals and renewed scrutiny by the EU, the deal will most likely be finalised by mid April, and the new station will bear the name Sky Italia.
News Corp has already reported positive results for the current fiscal year, claiming to have turned the business around. An upswing in the advertising business, higher DVD sales and good performance by US cable channels have contributed to net profits of USD 401 million in the first half year.
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