Analysts who are following Globo?s restructuring highlight the agreement concluded with News Corp. last year under which Globo is supposed to resume investment in Sky this coming August.
Globo hasn?t clearly detailed its strategic plans to recover financial health but these analysts are willing to bet that investing in Sky (or pay TV in general) isn?t one of them. All the signs are that Globo will allow its equity in Sky to be even more diluted. News Corp.?s latest earnings report shows it already owns almost 50% of the DTH operator in Brazil. At the rate shown by balance sheets in recent years it will have more than 51% in July.
Globo won?t be especially concerned about dilution because of contractual guarantees that Sky will continue to carry Globosat content. What isn?t clear so far is whether News Corp. is willing to go on assuming responsibility for investment in Sky and eventually for ownership.
According to a report in International Financing Review, a publication for investment analysts, the proposal Globopar submitted to creditors at the end of April called only for more time to repay debts totaling some 1.8 billion US Dollars after a two-year grace period.
Globopar also asked some creditors for a discount. PAY-TV News has learned that Globopar?s proposal didn?t include plans for internal restructuring, cost reduction or disposals.