At the same, the company controlled by the Berlusconi family is also considering offering new services with Telefonica and may seek a partner for its pay-TV unit Mediaset Premium.

Mediaset, which competes with Murdoch's pay-TV provider Sky Italia, is cutting costs while boosting spending on programs to lure customers to its offering. As part of its strategy to gain exclusive content, a year ago Mediaset beat Sky Italia by bidding about 700 million euros for the rights to broadcast soccer's UEFA Champions League for the 2015-2018 period.

"Pier Silvio's appointment as the new chief executive officer may make it easier to do an alliance with an international partner, simultaneously ensuring businesses continuity," said Carlo Alberto Carnevale Maffe, a professor of business strategy at Milan's Bocconi University. Pier Silvio also may be open to eventually giving strategic roles to new investors, he said.

Mediaset, with annual revenue of 3.4 billion euros ($US3.8 billion), is the largest piece of Berlusconi's business empire. The family also owns Italian publisher Arnoldo Mondadori Editore, football club AC Milan and financial services firm Mediolanum.

Mr Berlusconi may be negotiating the sale of a stake in the football team to an investment group led by Thailand businessman Bee Taechaubol, Italian newspapers have reported in the last two months.

Arguably, Pier Silvio Berlusconi has accomplished a couple of significant successes, Mr Aspesi said. "He masterminded the launch of pay-TV offer, a venture which has not been profitable but which is relevant enough to affect the calculations of Sky and Vivendi, and he has cut costs further than most people initially expected."

Mediaset shares rose 1 per cent to 4.61 euros in Milan, giving the company a market value of 5.5 billion euros. The stock has risen 34 per cent this year.

Bloomberg