PRISA, Telecinco and Telefónica confirm alliance

• Telecinco and Telefónica each acquire a 22% stake in DIGITAL+
• PRISA receives 976 million euros and a 17.336% stake in Telecinco.
• Telecinco and Cuatro together will lead the audiovisual sector in Spain and be one of the most important companies in the sector in Europe

PRISA has today completed the transaction which sees Telecinco and Telefonica each acquire a 22% stake in DIGITAL+, with the remaining 56% to be held by PRISA. The sale brings a cash inflow of 976 million euros for PRISA, an amount that will be used primarily to repay the group's debt. The price was calculated based on a company valuation of EUR 2,350 million.

Meanwhile, Cuatro has now been integrated into Telecinco, giving rise to a new media company which is set to be one of the largest in Europe in terms of audience figures and advertising revenue. As a result of the sale of Cuatro, PRISA becomes the second largest shareholder in the new company with a 17.336% stake, worth 590 million euros at market close on December 27.

PRISA be represented on the Board of Directors of Telecinco with two members, one of whom shall be company vice president. Telecinco and Telefónica, meanwhile, will be represented on the Board of Directors of DIGITAL+ with two directors each.