By: (AP) Organizacoes Globo, Brazil's biggest media organization, will restructure itself by forming a new holding company, giving it the ability to pursue foreign partners.
The move made Globo the first Brazilian media group to take advantage of a recent constitutional amendment that lets media companies sell stakes of up to 30% to foreign investors and organize holding corporations to engage in mergers, acquisitions, and preferential shares offerings.
"The constitutional amendment brings up a series of opportunities to Organizacoes Globo," a release from the company stated. With the new holding, named Globo S/A, the group expects investments that will allow a "healthy business growth," the release said.
Before the constitution was amended last month, non-Brazilians were not allowed to hold stakes in local media firms and media companies had to be owned by individuals.
The new holding company will include Globo's free television, weekly
Epoca and Rio de Janeiro-based daily
O Globo, along with the unit Globopar, the group's financing arm.
The constitutional amendment was seen as the best way to bring in fresh investments to help the Brazilian media out of financial burdens that include heavy foreign debt in the amount of billions of U.S. dollars.
Part of the crisis, which in the past 18 months caused hundreds of journalists to lose their jobs, was blamed on the fall in revenues that followed the burst of the Internet bubble.
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