Bill Gates must have found some change under his car seat again. He's an investor with a purpose..............
Agreements Include Investment in Globo Cabo S.A. and Creation
Of a Joint Marketing and Technology Group
SAO PAULO, Brazil, and REDMOND, Wash., Aug. 16 /PRNewswire/ --
Organizacoes Globo and Microsoft Corp. (Nasdaq: MSFT) today announced a series
of agreements under which the companies will work together to accelerate the
deployment of advanced broadband and Internet services to millions of
Brazilians. Both companies share a vision for tangible benefits being provided
to consumers through the combination of leading content, broadband digital
networks, software and Internet technology. The Globo and Microsoft alliance
is intended to foster the creation, delivery and operation of a set of joint
services for PCs and advanced digital set-top boxes for Brazilian consumers.
As a first concrete step in building this relationship, Microsoft will invest
in Globo Cabo S.A. (Nasdaq: GLCBY; BOVESPA: PLIM4), the leading cable
television operator in Brazil.
Joint Marketing and Technology Group
The overall agreement between Organizacoes Globo and Microsoft is intended
to establish a position of leadership on the Internet in Brazil. "The unique
Portuguese-language content brought by Globo and the state-of-the-art
technology from Microsoft can create a leading combination to translate into
greater value for both our consumers and our shareholders," said
Roberto Irineu Marinho, vice president of Organizacoes Globo.
In this initial phase, Globo and Microsoft will create a joint Marketing
and Technology Group that will evaluate potential business opportunities,
including the creation of a joint portal that would merge the existing MSN(TM)
Brazil service and Globo's portal (Globo.com) currently under development;
interactive TV services based on advanced set-top boxes and the Microsoft TV
platform; and providing Internet access services.
It is expected that the parties will work together to combine Organizacoes
Globo's news, sports, entertainment and educational content with Microsoft's
existing services including the MSN Hotmail(TM) Web-based e-mail service, MSN
Messenger Service, MSN Web Communities, MSN search and directory, and
Microsoft Passport services. "Microsoft believes in enabling the rapid
roll-out of digital services to consumers," said Mauro Muratorio Not, general
manager of Microsoft Brazil. "We are looking forward to the rapid deployment
to the Brazilian market of next-generation digital services enabled by the
combination of Microsoft's platform technologies and services with
Organizacoes Globo's network and leading content."
Investment in Globo Cabo S.A.
Microsoft will make a $126 million (U.S.) investment in Globo Cabo by
acquiring newly issued ordinary and preferred shares at an average price of
$0.60 (U.S.) per share ($6 per ADR-equivalent). In conjunction with the
investment, Microsoft will be given the right to participate in the company's
board of directors, among other governance provisions. "Microsoft's capital
infusion and the broader strategic alliance will assist Globo Cabo in
providing its subscribers with earlier access to a wide range of advanced
services over its broadband network," commented Moyses Pluciennik, Globo
Cabo's chief executive officer. "This investment is an important first step in
our ongoing strategic recapitalization initiative." Globo Cabo currently has
the most advanced cable network in Brazil, with two-way architecture that
covers more than 4.5 million homes.
As part of a continuing strategic involvement with Globo Cabo, the
investment agreement will provide Microsoft with the option to acquire
additional Globo Cabo stock over the next three years. "Our agreement
represents an important step in building a truly global Web lifestyle," said
Mauricio Santillan Razo, regional vice president for Microsoft Latin America.
"We are very excited to expand our existing relationship with Globo Cabo to
new areas that will generate an even richer Internet and television experience
for millions of people."
After the initial investment, the next planned step in the strategic
alliance is the full-scale launch of Virtua, Globo Cabo's broadband high-speed
Internet access service. This service, currently a fully operational
commercial test using the Microsoft Commercial Internet System (MCIS)
platform, is expecting approval from the Brazilian telecommunications
regulatory authority in the near future.
About Organizacoes Globo
Organizacoes Globo is a group of companies controlled by the Marinho
family, leaders in the media and entertainment businesses in Latin America.
The companies are known for their capacity to produce a wide range of
high-quality information and entertainment content. Among these companies are
the leading broadcast television network Rede Globo; pay television channels
including a 24-hour news and a sports channel, Globonews and SporTV;
market-leading newspapers and magazines; and a network of radio stations and
telecommunications companies. The Marinho family also sponsors the Roberto
Marinho Foundation, which is dedicated to educational and cultural projects,
including a 24-hour educational channel.
About Globo Cabo S.A.
Globo Cabo S.A. is the largest cable television operator in Brazil, with
ownership interests in 18 cable television systems and one MMDS operation,
including systems in Brazil's three largest cities: Sao Paulo, Rio de Janeiro
and Belo Horizonte. All except one of these systems are located in southeast
and central-west Brazil, the most developed and populous regions in the
country. The controlling shareholders of Globo Cabo are Organizacoes Globo and
Bradesco, the largest retail Bank in Brazil.
About Globo.com Ltda.
Globo.com is the newest venture of Organizacoes Globo. The company will
aggregate the multimedia content produced by the group's media companies in
the Internet environment. The company will target Portuguese-speaking
audiences around the world.
About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software for
personal computers. The company offers a wide range of products and services
for business and personal use, each designed with the mission of making it
easier and more enjoyable for people to take advantage of the full power of
personal computing every day.
NOTE: Microsoft, MSN and Hotmail are either registered trademarks or
trademarks of Microsoft Corp. in the United States and/or other countries.
Other product and company names herein may be trademarks of their respective
owners.
For more information from Microsoft, financial analysts only:
Carla Lewis, senior director of investor relations, Microsoft, 425-936-3703,
or carlalew@microsoft.com
SOURCE Microsoft Corp.
Web Site: microsoft.com |
