Italian broadcaster Mediaset has exercised its put option to sell R2, the technology and infrastructure platform for its Premium pay-TV unit, to rival Sky Italia.

According to Italian daily Il Sole 24 Ore, R2 consists of about 130 subordinate employment contracts; the contract with NAGRA for the encryption software and hardware; and the operation part of Mediaset Premium.

The put option was foreseen in an agreement, signed by the two parties in March. It also includes the distribution of the Premium movie and TV series channels and Mediaset’s flagship channels on Sky Italia, as well as the launch of Sky Italia’s offer on DTT.

The whole operation should be concluded by the end of the year, as it is also necessary to get the unconditional approval of Autorità Garante della Concorrenza e del Mercato (AGCM), Italy’s Antitrust Authority. In the case of a negative opinion, Sky Italia would be able to withdraw from the agreement.

According to Mediaset, the commercial agreement with Sky Italia will generate positive effects on EBIT of €60 million – €70 million a year. For 2018, the positive effect will be around €30 million – €35 million.

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