The World: Madrid - Telefonica buys 20 per cent stake in Digital Plus

Telefonica, the Spanish telecoms operator, is to acquire a 20 per cent stake in the pay-TV provider Digital Plus.

Digital Plus is the satellite TV business of Prisa, Spain's largest media group.

The stake is estimated to be worth EUR470 million and Telefonica is expected to appoint directors to the company when the deal is complete.

The global decline in ad revenue has damaged Prisa, which described Telefonica as "the best imaginable strategic partner" for Digital Plus.

Less than a year ago, Prisa rejected a joint bid by Telefonica and France's Vivendi for its entire pay-TV platform.