Shakeup Italo style
Blocked TMC sale deflates Cecchi Gori, MTV
Telecom Italia, the cash-rich former monopolist that controls Seat, said it was appealing the verdict and proceeding with the previously planned integration of Seat and TMC activities. But "this business as usual" attitude seems increasingly groundless as most observers expect the regulator's decision to be confirmed.
That means TMC is again back in the land of total uncertainty. The two-channel terrestrial TV network is currently airing old movies and low-budget productions, but a team of top managers recently hired by Seat is working on a relaunch due in September.
They include TMC head of programming Roberto Giovalli and general manager Roberto Mauri, both snatched from Silvio Berlusconi's TV group Mediaset. Commenting on the watchdog's decision, Giovalli said he was "optimistic and has kept on working" on the transformation of TMC's first channel into a kids and youth service and on boosting its share of the audience from 2% to at least 5%.
According to the original plans, the second TMC web was to "host" Italy's successful MTV Channel, which lost its terrestrial broadcasting license last year and is currently airing with a temporary permit. This project too is now jeopardized.
Also affected is the Cecchi Gori Group, which desperately needs cash to invigorate its business.
Newly appointed CCG general director Mario Sconcerti said the watchdog decision was "a good opportunity to renegotiate the financial terms of the sale of TMC to Seat."
The contract Cecchi Gori signed in August with Seat linked the final price of TMC to the stock market, and the original $365 million price was greatly reduced by the bear markets of the last few months.
Industry sources said Cecchi Gori is already looking for a new buyer. Possible candidates include Telefonica's Dutch TV production company Endemol, Italy's publishing house De Agostini (which signed a contract with former Mediaset CEO Maurizio Carlotti) and the always mentioned Rupert Murdoch. All of them have denied any interest in TMC, however.
The only TV player to benefit from the watchdog decision is Berlusconi's Mediaset, whose virtual monopoly in Italy's commercial TV business was reaffirmed.
