Due to restrictions for foreign owners of the Russian media, UTV and Hearst Shkulev Media began to reorganize the business
According to the new amendments to the Law “On Mass Media”, since January 2016, foreigners are prohibited from directly or indirectly owning more than 20% of any Russian media. Moreover, amendments to the law oblige local media owners to re-register property in the Russian jurisdiction by 2017, if the business is controlled through foreign offshore companies. Therefore, now foreign investors can either leave the Russian market or reorganize the business so that it meets the new requirements.
UTV holding, managing Disney air channel, made the first step towards restructuring. The holding’s co-owner is Ivan Tavrin, the founder of the Media-1 group, which is now part of UTV. Since autumn 2011, 49% of the channel is owned by the American Walt Disney Co. This month, Tavrin became the founder of New Media Holding LLC. The main activity of the new LLC is the work in the field of law.
RBC sources believe that the “New Media Holding” will be involved in the restructuring of the Disney channel. Such companies will register and other beneficiaries of UTV.
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According to the law “On the Procedure for Making Foreign Investments in Economic Societies of Strategic Importance for Ensuring the Defense of the Country and the Security of the State,” any television broadcaster is considered strategically significant if its programs extend to territories where at least half of one RF subject lives.
Therefore, in order to increase the share in the Disney channel to 80%, the offshore head structure of UTV should receive approval not only from the Federal Antimonopoly Service, but also from the government commission on monitoring foreign investment. However, the commission meets no more than twice a year. In this scenario, restructuring can be significantly complicated.
Media Group Hearst Shkulev Media is also engaged in restructuring. The group is owned by Viktor Shkulev and American Hearst Corp. The main legal entity of the group in Russia is Hearst Shkulev Media LLC. According to SPARK and Unified Statements, in July, Shkulev became the co-founder and CEO of two new companies - Hearst Shkulev Digital and Hearst Shkulev Publishing.
At the end of last year, the Hearst Shkulev Media group agreed to buy a 50 percent stake in the key asset of the Russian publishing house Sanoma Independent Media - Fashion Press. However, the Ministry of Communications and the government foreign investment commission were against the deal. Then, on the eve of the entry into force of restrictions for foreigners, this could disorient the market.
In July of this year, Hearst Shkulev Media made Sanoma a new proposal. But the company “Eichespi Holding” will act as a buyer.
UTV holding, managing Disney air channel, made the first step towards restructuring. The holding’s co-owner is Ivan Tavrin, the founder of the Media-1 group, which is now part of UTV. Since autumn 2011, 49% of the channel is owned by the American Walt Disney Co. This month, Tavrin became the founder of New Media Holding LLC. The main activity of the new LLC is the work in the field of law.
RBC sources believe that the “New Media Holding” will be involved in the restructuring of the Disney channel. Such companies will register and other beneficiaries of UTV.
')
According to the law “On the Procedure for Making Foreign Investments in Economic Societies of Strategic Importance for Ensuring the Defense of the Country and the Security of the State,” any television broadcaster is considered strategically significant if its programs extend to territories where at least half of one RF subject lives.
Therefore, in order to increase the share in the Disney channel to 80%, the offshore head structure of UTV should receive approval not only from the Federal Antimonopoly Service, but also from the government commission on monitoring foreign investment. However, the commission meets no more than twice a year. In this scenario, restructuring can be significantly complicated.
Media Group Hearst Shkulev Media is also engaged in restructuring. The group is owned by Viktor Shkulev and American Hearst Corp. The main legal entity of the group in Russia is Hearst Shkulev Media LLC. According to SPARK and Unified Statements, in July, Shkulev became the co-founder and CEO of two new companies - Hearst Shkulev Digital and Hearst Shkulev Publishing.
At the end of last year, the Hearst Shkulev Media group agreed to buy a 50 percent stake in the key asset of the Russian publishing house Sanoma Independent Media - Fashion Press. However, the Ministry of Communications and the government foreign investment commission were against the deal. Then, on the eve of the entry into force of restrictions for foreigners, this could disorient the market.
In July of this year, Hearst Shkulev Media made Sanoma a new proposal. But the company “Eichespi Holding” will act as a buyer.
Source: https://habr.com/ru/post/293036/
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