The Communications Ministry?s draft bill enabling foreign companies to invest in media organizations signaled that the Government plans additional measures to open the door to pension funds and other local institutional investors. It will have to resolve the issue of cross-ownership restrictions first. In the case of radio and TV broadcasting, restrictions were imposed by Decree 236/67, which broadcasters have long opposed. Today, however, more and more media companies want support from BNDES, the national development bank, which often finances companies by acquiring equity rather than extending loans. In the media industry this strategy is currently blocked by cross-ownership restrictions, which also keep out pension funds and other institutional investors.
Media conglomerates
