SKY share price: Italy regulator investigates Serie A broadcast deal

on May 20, 2015
Updated: Oct 21, 2019

Italy’s anti-trust authority AGCM is to investigate the sale of broadcasting rights of the country’s top Serie A football league to SKY Italia and Mediaset amid concerns regarding the legality of the deal.

SKY’s share price inched 0.18 percent lower to 1,088.00p as of 11:42 BST today, underperforming the FTSE 100 which was 0.03 percent in the green. The company’s stock has climbed more than 20 percent year-to-date.
The AGCM said it had launched an inquiry over a possible sharing agreement between the two media companies as there were grounds to believe that EU competition law may have been violated as new entrants were barred from the auction. The AGCM also said that it had concerns that the final deal did not necessarily reflect the bids that were initially made.
As part of the investigation, the AGCM and the Italian financial authority said they had searched a total of six offices belonging to the respective companies. Authorities said that the investigation also extended to the Italian football league and Infront, the Swiss-based agency that managed the auction process.
Sky Italia said in a statement quoted by The Guardian that it was cooperating fully with the authorities and was “confident that it operated with integrity throughout the process”.
The investigation is expected to be concluded by April 2016.
The broadcast rights were sold for €2.829 billion in total, split between the two companies and covering the next three football seasons. SKY received the right to air matches via satellite, while Mediaset won digital terrestrial rights.
As of 13:00 BST, Wednesday, 20 May, Sky Plc share price is 1,086.50p.

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