Telecom Italia to exit Sky?

16 Sep 2004

Telecom Italia is locked in talks to sell its 19.9% stake in pay-TV operator Sky Italia to fellow shareholder News Corp. The deal would give News Corp full ownership of the broadcaster, leaving Telecom Italia to concentrate on its TV activities via broadband internet. It has also been suggested that the two companies would become direct competitors for the lucrative TV broadcast rights to the country’s soccer leagues. A price for the stake has yet to be agreed, but sources close to the deal predict an agreement is likely to be reached within two weeks.