News Analysis: As his political fortunes fall Berlusconi is back in business

With Forza Italia party imploding and his ban on public office limiting his room for political manoeuvre, Italy's former premier Silvio Berlusconi is turning again to his first love - making money.

"Father has returned to the company," declared the mogul's two eldest children, both key lieutenants in his business empire, according to Italian press reports, as they celebrated having their father back with them in the boardroom.

And the evidence that the ex-prime minister is once again flexing his business muscles is clear to see. His giant Mondadori publishing house, run by eldest daughter Marina Berlusconi, has made a takeover bid for the Rcs publisher. Rcs is due to decide on whether or not to resist the offer by Monday, March 2.

But of far greater significance is the news that Berlusconi, 78, has set his sights on buying two thirds of Rai Way, the broadcast towers division of the public TV and radio company Rai, for 1.2 billion euros.

This flurry of activity led ex-Democratic Party leader Pier Luigi Bersani to tweet: "Mondadori - Rcs; then Mediaset - Rai Way; now we're waiting for AC Milan to buy Inter". With AC Milan losing up to 70 million euros a year, Berlusconi might be more inclined to sell the famous football club, rather than invest further in the sport.

But it is the ambitious plan by Berlusconi's Mediaset TV empire, of which his son Piersilvio is vice-president, to buy Rai Way that is making waves. Italian Prime Minister Matteo Renzi has said that Rai should maintain its majority holding in Rai Way. Experts say a compromise deal is likely.

Fabrizio Perretti, a media business specialist at Milan's Bocconi University, said control and influence over the supply of TV content would help Mediaset. But he added: "The investment in Rcs would seem to make less sense. To be honest, we don't really know what Berlusconi is planning. But I suspect it's all part of some bigger game, which we don't yet understand."

But while Berlusconi appears to be concentrating again on money rather than winning elections, there's no doubting the political significance of his moves on Rai. Left-wing critics of the mogul were outraged that he might attempt to buy Rai Way.

Michele Anzaldi, a parliamentarian for the center-left Democratic Party and the secretary of the RAI watchdog committee, said it would be unthinkable for Berlusconi to buy a majority stake in this key part of the state broadcast system. "It would be like buying the Trevi Fountain," he said.

But not only left-wing critics are alarmed. Italy's main business daily, Il Sole 24 Ore, warned that Mediaset's attempt to buy a big stake in Rai Way, which "serves as the spinal cord through which public services, both TV and radio, are transmitted" was "against the interests of the radio and television industry and to the free flow information."

State TV company Rai, would, the newspaper said, be "smaller and poorer" because it would have to pay for access to Berlusconi's EiTowers network, and be "more vulnerable to the whims and interests of Mediaset," its key rival.

But there are other reasons behind Mediaset's acquisition plans. The Renzi government wants to change the controversial Gasparri law of 2005, which was supposed to regulate the Italian broadcast system, but which did so to the distinct advantage of Berlusconi, the then prime minister as well as the controller of the Mediaset TV company.

Berlusconi wants to ensure his TV group is in the strongest possible position to deal with new, unfriendly media legislation.

And government insiders say that the aggressive stance from Mediaset is in part prompted by plans to overhaul and modernize, Rai, the monolithic state rival, along the lines of Britain's BBC.

RAI director general Luigi Gubitosi said on Thursday that changes to the organization were finally being made after 35 years. He said that a new plan approved by the board would save some 70 million euros a year. "We will be able to do more, while providing more quality service to our viewers," he said.

Analysts say that with this kind of challenge, Berlusconi was bound to respond. And senior figures at Fininvest, Berlusconi's holding company, say the mood is upbeat. The figures show why: even as Berlusconi's political fortunes have fallen, his bank account has bounced back. In November 2012 Mediaset's share price hit an historic low of 1.16 euros. By January 2015 it had risen to over 4 euros.

Most people agree the sun is setting on Berlusconi's political career. The tycoon's political difficulties were further underlined on Friday, with news that Matteo Salvini, the head of the Northern League, a sometimes ally, had dismissed the prospect of an election pact with Forza Italia.

But it's not personal or political vendettas that are behind the surge in Berlusconi's business activity. And Renzi, the arch pragmatist acknowledged that Mediaset's move on Rai was financially motivated. "You have to see the operations of the market for what they are; not political moves but simply the market," Renzi said.

First and foremost the three-time prime minister is a businessman. And when politics offers him no immediate advantage, he always returns to what he does best, making money.

Perretti said: "Don't forget he entered politics to protect his business. I think that he's probably decided to make the most of his political connections while he still has them to help his business. It's that, not politics that is always upper-most in his mind." Endit