Spain's Telefonica buys into Sogecable

Deal values satellite platform Digital Plus at $3.54 bil

MADRID -- After months of negotiation, Spanish telecom giant Telefonica said Wednesday night it has bought a 21% stake in Spain's leading media group Prisa's pay TV subsidiary, Sogecable, for €470 million ($707.5 million).

The move values Sogecable's satellite platform Digital Plus at €2.35 billion ($3.54 billion) and is expected to boost content for Telefonica's pay TV service Imagenio.

Prisa had been looking to sell its satcaster to pay off its €5 billion ($7.54 billion) debt and restructure its media business, emphasizing its free-to-air channel Cuatro.

Telefonica's shares closed up 0.83% to €19.52 ($21.41), while Prisa closed up 3.03% at €3.40 ($5.12), compared with a 0.51% rise on the blue chip index IBEX.