SKY and DirecTV Joint Venture

In 08/25/2006 the joint venture of Sky with DirecTV was concluded. Sky Brasil, the new company after joint venture, is controlled by Grupo DirecTV ( 74%) and Globo (26%).

Together, DirecTV Brasil and Sky Brasil have, approximately, 1.3 million subscribers. It must now begin the process of migration of the subscribers of DirecTV Brasil to Sky Brasil plataform was concluded on June 2007

SKY Brasil (1Q07)

Joint Venture Chronology

In 10/11/04, a Globopar and DirecTV announced an agreement to the joint venture of DirecTV and Sky, in Brazil. The new company, even keeping the name Sky Brasil, will be controll by DirecTV ( 72%) keeping Globopar with 28% left. The management of Sky Brasil will be done by DirecTV ( commentary)

In 11/18/05, the operation received previous consent of Anatel and was sent to CADE with approval recommendation with restrict to probable impacts caused in the competition.

In 05/25/2006, CADE approved the joint venture of Sky with DirecTV putting some restrictions following presented:

In relation to the price's politics, CADE finished, for the stated period of 5 years, Sky practice iqual prices in the whole country to the channel packs, allowing local promotions for the maximum stated period of 90 days . The referred packs must be offered in the whole national.

CADE forbade, for the state period of 5 years, that the companies News Corporation Limited ( owner of Directv) and Hughes Eletornics Corporation, work, for the companies of Grupo News, in the supplier of audiovisual content, as well as the exclusiveness in the transmission of the main championships of Brasilian Soccer Championship, Brasil Cup, Libertadores das Américas and Campeonatos Estaduais de São Paulo and Rio de Janeiro.

Brazilian content, CADE obligated SKY:

• Continues transmiting channels of brasilian content available in the DirecTV to the actual subscribers that came to Sky, for the stated period of 3 years.
• Guarantee to the programmers of national content, the same revenue nowadays done with the commercialization of this content, because of the contracts that had with DirecTV
• In the stated period of 180 days, increase in 20% tha base of subscribers that received channels of brazilian content, keeping ay least the 30 months left.

Still obligates Grupo Globo to veet or determinate the conditions of transmission of programs or national audiovisual content of brazilian company, in the operations of Sky and determined that will be changed the contracts in a form which Sky can contract program or national audiovisual content of brazilian company, new or already existent, for most simple partners or shareholders.

Sky Brasil Serviços Ltda is a digital TV operator via satellite direct-to-home (DTH), It shareholders, before the joint venture with Directv, wer Globopar (54%), News Corporation (36%) and Libery Media Corporation (10%).

Operator's Site : SKY