Vivendi gives the first preference to TelefonicaTim Kennedy (Author) Published Date : Aug 28, 2014 14:56 ET
After all the talks which revolved recently over the deal of the Brazilian Telecom sector French Media firm Vivendi choose Telefonica for the talks regarding the deal of its Brazilian broadband unit GVT.
According to the sources Telefonica is willing to enter into the Brazilian telecom market as the firm is looking to use the pay-tv along with the broadband service to ensure top quality service to the customers and to increase its profit after the mobile sector growth has been on the slower side recently.
However it was a shock for the Telecom Italia who has been looking to expand its business and needed the GVT badly as they have no fixed line network so far and was looking to make a deal with Vivendi.
Meanwhile Vivendi who also has been going through rough times in the last two years where they already sold its three telecom business along with its video games division to clear their debts and to concentrate on its media.
According to the statement of the firm it says, The Telefonica offer best meets the group's strategic and financial objectives. Vivendi begins a new phase in its development to become an integrated industrial group focused on media and content.
Vivendi will be receiving 4.66 billion in cash from Telefonica where the previous deal talk with Telecom Italia lacks in this side as the cash payment was a huge benefit for Vivendi to go ahead with the deal.
Earlier Vivendi s biggest shareholder Vincent Bollore started talks with Telefonica and Telecom Italia after he took over as the chairman of the firm.
Vivendi gives the first preference to Telefonica