Italian commercial broadcaster Mediaset has rejected a EUR 1.1 billion offer from Sky Plc for its pay-TV unit Mediaset Premium, according to unnamed sources cited by Italian daily Il Sole 24. Although the amount offered is greater than Mediasetís EUR 900 valuation of its unit (EUR 800 million enterprise value plus EUR 100 million in cash), the sources suggested that EUR 1.1 billion for the total control of the Italian pay-TV market was deemed insufficient by Mediaset, which is also concerned about the effect of a ďsuper-SkyĒ on its own future development. Mediaset owns 89 percent of Premium after it sold an 11 percent stake to Telefonica last year for EUR 100 million.

Mediaset CEO Pier Silvio Berlusconi refrained from giving details of the offer at the sidelines of an event on 01 July, but said "there could be news soon" about a commercial deal with Telecom Italia to distribute premium content, according to Reuters. An agreement with French media giant Vivendi also remains a possibility but not in the short term, he said, adding that "there's great feeling between us, if we can find a project we both like I'm sure we'll go ahead with it."