Globo to Sell Sky Stake

Brazil’s Globo Comunicacoes e Participacoes is selling 73% of its 26% stake in Sky Brazil and will retain 7%, according to a filing by US-based DirectTV. Globo’s entire stake valued at $400m-$550m, says DirectTV. Barclays says that while the rationale for Globo to sell the stake is not clear, it does provide a cash infusion that may be a short-term positive fro creditors. The shop points out, however, that Globo is not in need of cash, as it ended Q1 with $3.5bn on hand. The transaction is part of an agreement dating back to 2004, allowing Globo to put all or a portion – but not less than half – of its share in Sky Brasil to DirectTV, Barclays adds.