Pearson Group Plc, the UK-based media company, is linking up with Spanish incumbent telco Telefonica SA to offer multimedia and internet services in the Spanish and Portuguese markets, especially in Latin America.
The two companies already work closely together, with Telefonica owning a 20% stake in Recoletos, Pearson’s media business in Spain. As part of the new deal, Telefonica is paying up to 400m pounds ($632m) for a 5% stake in Pearson and will sell Pearson its 20% stake in Recoletos.
Pearson is the best multimedia firm in Europe, Telefonica chairman Juan Villalonga said in a statement likely to face critical examination in the industry. We cannot find a better partner to use our infrastructure to widen the range of services we offer in Spain and Latin America.
