British pay-TV firm BSkyB is considering a bid of more than €2.5 billion (US$4 billion) for Spanish pay-TV platform Digital Plus.
A Reuters report, quoting the Financial Times, also said there had been no decision to proceed, but BSkyB's strong cash flow could allow it to finance an acquisitions.
The report said Grupo Prisa, Spain's largest media company, was expected to auction Digital Plus later this year, probably from around September, to repay debts.
Spanish groups Telefonica and ONO, France's Vivendi, and French Telecom's Orange unit were also likely to be interested, it said.
BSkyB was not immediately available for comment.