Business News

Posted: Wed., Feb. 11, 1998, 11:00pm PT

Brazil to auction off ATC frequency

President's announcement latest in series of downsizing moves

BUENOS AIRES -- Argentine president Carlos Menem has said he will sign a decree to auction off the frequency used by money-losing pubcaster ATC.

Menem's announcement marks the latest in a series of long-term moves designed to scale down ATC, a process that his been hindered by political and union opposition; and a long-standing frequency dispute with neighboring Uruguay.

ATC now has debts of $63 million. Much of that will be absorbed by the state, but some will likely be rolled into the frequency's purchase price.

The plan calls for ATC to operate as a low-power station on channel 4.

Potential bidders are said to include Venezuela's Cisneros Group, which recently unveiled a $500 million media investment fund with venture capital firm Hicks, Muse. Local parties said to be interested are Citicorp-managed investor group CEI, former ATC director Gerardo Sofovich and top TV celeb Marcelo Tinelli.

According to ratings agency Ibope, for the last week of January ATC averaged a 1.3 rating, while Telefe (channel 11) led with 11.1, Artear (channel 13) earned 8.0, Libertad (channel 9) had 4.8 and America (channel 2) took 4.7.

Contact the Variety newsroom at news@variety.com

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