They were interested with ter-Stegen too. Hart is probably City's player of the season so it'd be quite harsh if he left.
I think he's the type of bloke that will try to fight for his place for a year. Hopefully Pep realises that Ter-S is actually a pretty average GK and it'll be easier to make Hart a better player with his feet than it will be to make Ter-S a better GK with his hands.
As for Valdes, it'd be a very good buy, but with Victor being out of top level football for 2 seasons it'll be take time to get back into the swing of things.