News Analysis: Why Berlusconi so keen to sell his business empire?

Silvio Berlusconi, during last weekend, indicated that he had sold a large stake in his beloved AC Milan to Thai entrepreneur Bee Taechaubol. The deal, which is valued at up to 1.2 billion euros (1.34 billion U.S. dollars), appears to be part of an ongoing multi-billion euro assets sale.

By cashing in so spectacularly, the three-time prime minister has set the rumor mill into overdrive with people in Italy and beyond speculating on what he is planning next.

The tycoon is proud of the business empire he has built up from scratch. Beginning with a modest property development in the 1960s he went on to become Europe's most famous media magnate, with interests in asset management and of course football. So why sell it now?

One answer is that he needs to fill holes in his finances, which have grown large in the past few years. TV advertising revenues crashed due to the long and brutal recession, while in 2013 his Fininvest holding company was made to pay crushing damages of 494 million euros to his arch rival Carlo De Benedetti for the illegal means it used to win a takeover battle for the Mondadori publisher over 20 years earlier.

AC Milan football club, which Berlusconi regards as the jewel in the crown of his business empire, has also come under extreme pressure. The club ended 2014 with a net loss of 91 million euros, the highest in its history. Over the last 10 years, the club has accumulated net losses of 361 million euros.

The financial downturn reflects the club's poor performance on the pitch. Hence the determination of Berlusconi to find an investor to provide it with a cash injection of several hundred million dollars to buy new players and revive its fortunes.

The current selling spree actually started last October, when Berlusconi shed his 20 percent stake in Mediolanum, the asset management company. In reality, though, he was ordered to sell it: Italy's central bank declared the former prime minister unfit to own more than 10 percent of a financial company following his definitive conviction for tax fraud in August 2013.

But it appears that Berlusconi is not finished yet. He wants to sell-off more of the family silver in the form of this Mediaset TV group. Australian tycoon Rupert Murdoch and the French broadcaster Vinendi are the most likely candidates for buying a stake. Berlusconi's son and Mediaset vice president Pier Silvio has insisted that his family will retain a controlling stake.

By selling off parts of AC Milan, Mediaset plus stakes in his finance and media businesses, 78-year-old Berlusconi, who last month completed a year-long community service sentence for the tax fraud conviction, could compile a 4-billion-euro liquidity mountain, according to Italy's top business daily Il Sole 24 Ore.

August Preta, director of IT Media Consulting, said the sales showed that Berlusconi was reacting to the changes, many brought by the internet, that meant traditional television and football were making less money. "He's thinking about diversifying - and going where the money is," he said.

But such a vast amount of cash is much more than Berlusconi needs to balance the books, breath new life into AC Milan or even overhaul his remaining businesses.

The scale and breath of the assets sale suggests Berlusconi has other plans. Il sole 24 Ore said Berlusconi had his inheritance in mind. It said the asset sales would provide "a trove of liquidity that could set off a profound overhaul of the empire ... in view of a succession as he leaves the group to his five children."

But others say that the mogul, despite his advancing years, has no intention of heading off quietly into the sunset.

"With all this liquidity he hopes to return to the position of king maker," said one source close to the Berlusconi camp. "This is not about cashing in his chips. He's not selling up to give his money over to his children and settle down. He is re-organizing - restructuring, and with this huge amount of cash he hopes to be the center of power again."

Roberto D'Alimonte, a LUISS University political expert and former adviser to Matteo Renzi, said Berlusconi would use his financial muscle to maintain his political power, influence election campaigns - and protect his long-term business interests.

"Berlusconi is never going to be on the political frontline again. But he will absolutely act by reorganizing his assets to maintain his behind-the-scenes power," he said. Endit