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Sky Italia agrees to buy Viacom's MTV Italia

Reuters - UK Focus

MILAN, July 31 (Reuters) - European pay TV company Sky (Amsterdam: BK8.AS - news) has agreed to buy Italy's MTV free-to-air channel from U.S. media group Viacom (NasdaqGS: VIAB - news) , a move that could pressure local market leader Mediaset (Other OTC: MDIEF - news) .

Sky Italia, the Italian arm of Sky (LSE: BSY.L - news) , and Viacom did not disclose financial details in a joint statement on Friday.

The channel, which has the prized No. 8 position on the TV remote dial, will continue to distribute Viacom content, coupled with programming from Sky Italia.

(Reporting by Maria Pia Quaglia and Danilo Masoni, editing by Agnieszka Flak)