Argentinian media conglomerate Grupo Clarin, which owns cableco Cablevision and ISP Fibertel, has agreed to follow a government directive and break up its business.
Clarin has proposed to divide its various TV and radio licences, channels and operators…
Argentinian media conglomerate Grupo Clarin, which owns cableco Cablevision and ISP Fibertel, has agreed to follow a government directive and break up its business.
Clarin has proposed to divide its various TV and radio licences, channels and operators into six separate entities.
The bulk of Cablevision and Fibertel’s operations will be put into one of these six units. Existing minority investor Fintech Advisory will hold 40% of this business.
The entity will hold also hold 24 cable channel licences, the maximum the new law allows.
Clarin’s move follows a decision by Argentina’s Supreme Court ruling that new broadcast legislation – which includes break-up powers – was constitutional. The conglomerate has moved to voluntarily split its business in a pre-emptive move.
Clarin’s decision has been a surprise to many, according to local publication the Buenos Aires Herald. The group and the Cristina Fernández de Kirchner-led government have been feuding in court for the last four years since the media reforms were passed in 2009. Clarin owns Argentina’s largest newspaper which has been a vocal opponent of the government.
Kirchner has reportedly faced criticism over her administration’s new broadcast laws, which some have seen as an attempt to interfere with an adversary. However the government is against concentrated ownership of media assets and argues that it is promoting plurality.
