MILAN — Media mogul and premier Silvio Berlusconi’s personal holding company Fininvest is selling its film company Medusa to its majority-owned broadcaster Mediaset.
Rumors of the deal have been circulating in financial and media circles and was reported Thursday by financial newspaper Sole 24 Ore. Neither Fininvest nor Mediaset commented on the report.
Medusa has recently replaced Vittorio Cecchi Gori’s group as Italy’s leading film producer, distribber and exhibber.
Medusa has three divisions (films, home-video and theaters) and in 2001 its revenues reached 200 million euros.
The in-group sale is aimed at strengthening Mediaset and creating synergies with the TV and home video activities of the company.
The Milan Stock Exchange reacted negatively to the report Thursday; traders fear the acquisition would benefit Fininvest rather than Mediaset.