Roberto Irineu Marinho has confirmed in an interview with PAY-TV News that one of the ideas currently being examined for restructuring the Globo group is a merger of Globopar with TV Globo, as reported Monday, August 18, by the Financial Times (FT). PAY-TV News subsequently reproduced and expanded the story. But Mr Marinho told us a decision hasn?t been taken yet and declined to say how far negotiations with creditors have progressed or what terms are likely to be agreed as far as the restructuring is concerned. He thereby avoided commenting on what the creditors want. They?re interested in controlling the group?s cashflow, according to the FT.
Clarifying some of the things the media have been saying Mr Marinho, now CEO of the group, recalls the strategic plan drawn up in 2001 to bring together all the separate media, communications and entertainment businesses referred to as Organizações Globo under the umbrella of a single vehicle to be known simply as Globo S.A., a public corporation. A corporate restructuring process began at the same time, centering initially on cost savings and enhanced management efficiency. Early in 2002, Philippe Reichstul took over as president of Globopar with the mission of implementing the plan to create Globo S.A. and prepare to take it public.
The idea of debt restructuring was put forward by Globo itself in the second half of 2002, as a response to the severe foreign-exchange crisis in Brazil. This pushed aside the plan to create Globo S.A. and it was then that Mr Reichstul stepped down as president of Globopar.
The group remains divided into three business divisions: InfoGlobo (newspapers O Globo, Extra, Diário de São Paulo, and part-ownership of Valor Econômico); TV Globo/Globopar (broadcast television network TV Globo, pay-TV programmer Globosat, publisher Editora Globo, Globo Cochrane, record company Som Livre, and Globo.com); and Sistema Globo de Rádio.
A merger of TV Globo with Globopar, the holding company for several media businesses, would leverage significant synergies between the broadcast TV network and such businesses as pay-TV content production (Globosat) and music (Som Livre), Mr Marinho says, repeating that no decision has been made.
Organizações Globo, headed by Roberto Irineu Marinho, is still the strategic management unit for the Marinho family, which controls the group?s equity. The family develops the strategies and overall policy guidelines for all major divisions. Mr Marinho?s younger brothers João Roberto and José Roberto are editorial vice president and VP for social responsibility respectively.
Roberto Irineu Marinho is also executive president of the media segment (TV Globo, InfoGlobo and Sistema Globo de Rádio).