Analysts have welcomed last week’s deal between TVN and Canal Plus in Poland. The pair agreed to merge their pay TV platforms, ‘n’ and Cyfra Plus, and Canal Plus took a minority stake in TVN’s parent company.
“These moves are credit positive for TVN as the merger strengthens its competitive position and brings the potential for integration synergies,” credit ratings agency Moody’s said in a note. “The entry of Vivendi (via Canal Plus) into the TVN ownership structure is also credit positive for TVN given Vivendi’s strong business and financial profile.”
The final ownership structure of the combined pay TV platform is not yet clear, but Moody’s said that it expects TVN to ultimately hold less than 50% of the new service. “However, we believe that the combined business is likely to deliver more stable cash flows to TVN following integration of the two operations,” Moody’s noted. “We note also that TVN would continue to benefit from 100% of the cash flows of its TV and internet activities, which are not affected by the transaction.”