After an engagement that lasted six months, the Lagardere group finally signed the deal under which it bought into Canalsatellite the week before last, resulting in a pooling of resources in new media and channel production. Under the deal it is to take 34 per cent of Canalsatellite and 27.4 per cent of channels operator MultiThematiques for an overall Fr7.28 billion (Euro 1.1 billion. The Canalsatellite stake is made up of the 20 per cent held by Vivendi following the deal with Pathe last year, 10 per cent held by Time Warner and 4 per cent from Canal Plus.

During 1999 Lagardere took control of five cable and satellite channels, four of which are part of the MCM group, with the fifth (Meteo) slated to join it. These channels will be put into a joint venture company, 51 per cent owned by Lagardere and 49 per cent by Canal Plus. The agreement also will establish a joint venture company, 51 per cent Lagardere and 49 per cent Canalsatellite, to develop interactive services linked to future TV channels.