Clarin gobbles up pay TV players
First step to merging Cablevision with other assets
Clarin purchased the interest for an undisclosed sum from Vistone, an investment fund that acquired the stake this year from Fintech Media, a U.S.-based investment fund managed by Mexican millionaire David Martinez.
Clarin's move is seen as an initial step to merging Cablevision, which has 1.3 million subscribers, with its other cable assets to create a large platform for offering digital TV, broadband Internet and telephony. The conglom owns No. 2 Multicanal, with 863,000 subs, and 20% of No. 3 Supercanal, with 500,000 subs.
This wouldn't be approved by antitrust authorities now, but it might once telephone companies start offering pay TV over the same broadband phone lines that offer Internet access, says Enrique Carrier, a telecom analyst.
Clarin, which has interests in publishers, radio and TV broadcasters and film and TV studios, is entering Cablevision as latter emerges from a $796 million debt restructuring and wide losses. In the first half of 2005, Cablevision's losses narrowed to 15 million pesos ($5.2 million) from $14.6 million a year earlier, thanks to a 19% surge in revenue and 6.1% increase in subs.
Cablevision is spending $220 million over the next five years to digitalize its network, which reaches 3.5 million homes or 35% of the national total.
The debt restructuring, expected to conclude soon, will put up to 20% of the shares in the hands of creditors, leaving Texan buyout fund Hicks, Muse, Tate & Furst with 40% and Fintech and Clarin with 20% each.
Clarin said it wouldn't impose changes in management or operations of Cablevision.
