Purchase will create joint entity with annual revs of $534 mil
MADRID — Blue-chip Spanish publishing and media group Correo, 25% owner of broadcaster Tele 5, has bought Spanish publishing house Prensa Espanola.The move helps regional publishing giant Correo’s aim of controlling a national newspaper: Prensa Espanola owns ABC, Spain’s third most read quality daily. The purchase of Prensa will create a joint entity with annual revenues of $534 million. It also hikes Correo’s TV interests, giving it 30% of top light-entertainment production company Europroducciones and a leading presence in upcoming digital terrestrial television Net TV. Prensa Espanola held a direct 25% in Net TV, while indie production giant the Arbol group, in which Correo has a 17% stake, is a 12% shareholder in Net TV through Pantalla Digital. Correo now has to face possible antitrust pressure to relinquish either its Tele 5 stake, which seems unlikely, or any direct participation in Net TV.