Italy’s Mediaset is set to close negotiations with Germany’s Kirch Media by the end of October, with the official launch of their joint pan-European TV network, tentatively called Euroset, by the end of the year.

The news of the launch of the new joint-venture was announced at a meeting of top Mediaset managers in Milan on October 1 by CEO Maurizio Carlotti, who also added that "instead of a few channels, Mediaset will now have to think about a dozen TV channels" with international content. It seems that the first production of the new network will be a special New Year’s Eve programme to be aired simultaneously on Canale 5 (Italy) and Telecinco (Spain). The Luxembourg based Euroset Television will be a holding company where all the activities of the two media groups in the broadcast, advertising and production activities will converge. Currently it is 100 per cent owned by Mediaset, which controls it through its Mediaset Investment subsidiary, but as soon as all the agreements are signed and the deal becomes operative, Euroset Television will be recapitalised to up to L2,000 billion (pounds 690 million). The members of the administrative council will be Jan Mojto (president), Maurizio Carlotti (CEO), Giuliano Adreani and Dieter Hahn.

The reason for the delay in the launch of the new network is entirely due to the wait for necessary authorisations. It seems that Mediaset and Kirch are waiting for the green light from the EU for commercial agreements connected to various aspects of the deal. According to Mediaset CEO Giuliano Adreani, the new holding company will be open to other partners, possibly from France and the UK. He made it clear that "until we close the deal with Kirch, we cannot officially make contacts with other TV groups". However, Adreani admitted that so-called "light" agreements can be made with other TV networks, without the need for "caging up" into a joint venture. In the meantime, the venture is set to change its name. The common holding, up till now known under the name Eureka will have the Euro symbol in its name, accompanied by a reference to Greek mythology.

On the financial front, Mediaset should close the year with an increase of 9-10 per cent in advertising revenues. In the first semester of 1999, Mediaset registered an EBITDA of Euro 656.51 million, while the EBIT increased by 10 per cent to Euro 373.80 million. Investments have also increased, from Euro 369.84 million in 1998 to Euro 911.76 in 1999.