KKR Bids for Telecom Italia

    • Private equity firm KKR has made a bid for Telecom Italia.
    • The telecom giant works with DAZN on Serie A broadcasts.

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New York-based private equity firm KKR is taking aim at Italy’s biggest telecommunications company with a takeover bid for Telecom Italia.

Earlier this month, Telecom Italia announced it may seek to renegotiate its $1.1 billion deal with DAZN to distribute Serie A broadcasts after Telecom posted disappointing earnings results.

Formerly a state-controlled monopoly, Telecom Italia has seen its value steadily drop over the last five years. However, after a roughly 38% increase since Nov. 19 in the wake of the takeover bid, Telecom Italia reached an $11 billion market capitalization.

  • Telecom Italia and DAZN teamed up to secure rights to Serie A in a three-year deal earlier this year. 
  • The pact gained approval in July after Italian regulators received assurances that league matches would still be available to customers who don’t subscribe to Telecom Italia’s internet service.
  • Telecom Italia’s CEO Luigi Gubitosi resigned on Friday following a disagreement with top investor Vivendi.

The deal will have to be approved by Italian regulators to move forward, which may take steps to preserve the company’s Italian identity. One option could be to have public-private bank Cassa Depositi e Prestiti SpA increase its 10% stake in Telecom Italia.

In September, KKR announced that it was selling off its entire $852.9 million stake in retailer Academy Sports.