MILAN -Telecom Italia (TIM) could seek to renegotiate a 1 billion euro ($1.1 billion) deal with streaming service DAZN to distribute Italy’s Serie A soccer matches after the phone group posted lower than expected results, two sources familiar with the matter said.
Telecom Italia and DAZN declined to comment. News of a potential renegotiation of the deal was first reported by Italian daily Il Messaggero.
One of the sources told Reuters on Tuesday there was not “much room for manoeuvring” in the potential renegotiation.
Serie A in March awarded DAZN domestic rights to screen Italy’s top-flight soccer championship matches for the next three seasons, in one of the largest deals for the streaming service in Europe.
DAZN sealed a technological and distribution agreement with TIM to give its Serie A bid a boost.
The potential renegotiation comes at a time when Telecom Italia Chief Executive is under pressure by the group’s top investor, France’s Vivendi, having failed to stem a steady revenue decline in TIM‘s crowded domestic market.
TIM shares were up 3.75% at 1350 GMT, outperforming a flat FTSEMIB blue chip index.
($1 = 0.8794 euros)