The Ministry of Communications will discuss with media companies on the share of foreign law in the media – RBC

The Ministry of Communications will discuss with media companies on the share of foreign law in the media – RBC

Photo: Fotobank / Getty Images

Deputy Minister of Communications and Mass Media Alexei Volin on Friday, October 10, will meet with the heads of media companies with foreign participation and to discuss with them adopted by the State Duma in the last month, amendments to the law “On Mass Media”. About RBC told representatives of the two media companies. Wolin himself does not confirm or deny the fact of the meeting: “On the business we speak in silence».

Amendments jeopardize business media companies with foreign participation. Since February 2016 foreigners are prohibited from owning 20% ​​or more of the founder of any Russian media as well as direct or indirect control of the founder and actually determine its decisions. The bill was passed in a hurry to September 17, he was introduced to the State Duma, the 23rd in the first reading, the 26th – the second and third. October 1st amendment approved the Federation Council. Now they must be signed by the president.

The restrictions primarily affect three segments. On terrestrial TV is holding four channels “CTC Media” (CCC, “Home”, “Pepper” and “STS Love»), as well as Disney. The largest shareholder of “CTC Media” is the Swedish Modern Times Group (37,8%), still about 36% in free float on NASDAQ. Disney co-owners are holding YUTV Alisher Usmanov and Ivan Tavrin (51%) and the American Walt Disney Co. (49%). In the segment of thematic TV propagating through the network cable and satellite, the ban will affect Russian-language versions of foreign channels (Discovery, TV 1000, Nickelodeon, Universal Channel, etc..). Finally, the largest publishing houses as in terms of circulation and advertising revenues are on the representation of the Western media groups: Sanoma Independent Media (100% in the Finnish Sanoma Corp. and its international partners), Hearst Shkulev Media (50% of the American Hearst Corp., 50% – Victor Shkuleva), Burda (100% in the German Hubert Burda Media).

Explain Exchange

Amendments may be ” significant impact on the organizational structure and the company’s shareholders, “officially reported of leadership” CTC Media “, after the bill was passed in three readings. On that day, the company’s shares on the NASDAQ collapsed by 22.6%, to $ 6.66 per share. Total September 17, when amendments were made to the State Duma, to October 8, the action “CTC Media” fell by almost 45%, to $ 5.24 per share. Thus, the company’s market capitalization fell by $ 662 million to $ 816 million. However, on a drop in prices has affected more and the news of the establishment on the basis of the “Video International» (Vi) new seller commercials, which will serve all the essential channels except for the “CTC Media “(its new structure will continue to advise).

Even before the adoption of the amendments in the second and third readings” CTC Media “appealed to the State Duma with a request to explain how to operate in the new environment public companies, said CEO teleholdinga Juliana Slaschova. Answer, according to her, is not followed. The device profile information policy committee yesterday could not confirm the receipt of the letter from the “CTC Media».

Now the board of directors “CTC Media” A committee, which included independent directors and representatives of the Swedish Modern Times Group and which is currently working on “all possible options” work in new conditions, specified Slaschova. Participation of representatives of the other major shareholder – Cyprus Telcrest (25%), an affiliate of the bank “Russia” Yuri Kovalchuk – in the work of the Board is limited due to the United States sanctions against the bank and Kovalchuk personally.

At the very “CTC Media “in this already have experience of working with such a ban in 2008 teleholding bought” 31 Channel “in Kazakhstan, where foreigners can own, directly or indirectly, only 20% in any media. Nevertheless, the Russian company controls the Kazakh TV channel: it has 20% of the legal person holding a license for broadcasting, and 60-70% in the entities that supply this broadcaster content and attract advertising. As a result, “CTC Media” 60% economic interest in the group “31 channel».

The right to profit

O the ability to use a Russian Kazakh model when editing media is separated from the business structures, publishers have said.

This model, when business operations are separated from the activities of the editorial board, can be a working one, recognizes the Russian office of PwC lawyer Vladimir Krupin. Head of practice for working with telecommunications companies and the media of the Russian office KPMG Erkozha Akilbek adds that remains the ability to use licensing model, where, for example, publishing belongs to the Russians, and the foreign partner shall issue a license for the production of a magazine or newspaper.

Foreign media owners, according to a senior lawyer Intellectual Property Center of the Russian office of Philip EY Dubovik, can transmit their packets Russian people and lead corporate documents and agreements with the new owners so that the first retained the right to income in the same amount, and the alienation of other participants was possible only with the consent of the original owner. At the same time, notes Dubovik, new Russian owners obviously have to play a “fiduciary” role, that is to act as a certain, relatively, the holder of a trust, a special organization, but not to be totally dependent on the original owner.