Globopar has officially announced the changes in ownership of Sky Brazil anticipated by PAY-TV News. News Corp. has assumed control of management. Globo has reduced its holding from 54% to 49.9% and canceled investment of 50 million US Dollars in 2002-03. The Brazilian media conglomerate will also receive back 6m USD already invested. News Corp. will assume the investment and inject capital of its own, thus further diluting Globo?s position. By the end of 2002 News Corp., which currently holds 40.1%, will be the largest single shareholder, probably with a holding of about the same size as Globo?s before dilution, i.e. 54%. No information has yet been released on the position of Liberty Media, which holds 10%. Meanwhile, negotiations are at an advanced stage on Sky?s merger with DirecTV Latin America, which will evidently affect Brazilian operations. The merger requires U.S. regulatory approval for Echostar?s acquisition of Hughes, which controls DirecTV. Even if this transaction isn?t approved for the U.S., the merger is expected to go ahead in Latin America since News Corp. will be the only buyer. If the merger doesn?t come off in the U.S., Echostar will pose obstacles to a deal. For now, DirecTV and Sky together have some 3 million subscribers in Latin American, with Sky holding a small advantage in market share.
DBS
