Spain's Telefonica said on Wednesday that it has bought 21 percent of Digital+, the pay television business of Spanish media group Prisa, for 470 million euros ($707.5 million).

Of the 470 million euros, 230 million will be used to write off some of Digital+'s debt, Telefonica said in a statement.

Telefonica and Prisa have also signed an agreement to explore possible collaboration in developing audiovisual and other businesses in Spain.

(Reporting by Judy MacInnes; editing by Jason Webb)

($1=.6643 Euro)