The government’s purchase of the 45.7% stake in agency Lusa, owned by Global Media and Páginas Civilizados, has failed due to a “lack of broad political consensus”, the government announced today.
“At the moment, in the absence of broad political consensus, the operation has proven to be unfeasible,” the Ministry of Culture said in a statement entitled “The State is not acquiring stakes in Lusa.”
In the text, the Ministry of Culture states that “the next government will have to take on its responsibilities and find a solution that guarantees healthy pluralism, independence and the protection of public services provided by Lusa, which is essential for all media.”
In the “circumstances of the current political situation,” the government in its statement believes that it is not in a position to make such a decision.
In almost four pages, the Ministry of Culture explains the entire process, starting in August with the “expression of interest of shareholders” by the Global Notícias Media Group Páginas Civilizados in “the alienation of the shareholdings they own in Luz”, when the Minister of Culture “showed openness to begin negotiations so that the state can take a more significant position in the agency’s shareholder structure.
The executive’s goal from the outset was “the need to preserve Lusa’s autonomy and recognition of its strategic role in protecting social communications and journalism.”
The government also believed that the sensitivity of this kind of intervention “in the media” would require it to “communicate the sequence of decisions that might be taken with the political parties having seats in parliament, and especially with the largest opposition party”, the PSD.
“This was done from the very beginning, with full transparency, even in a political context that was still very different from the current one,” the statement also said.
Another condition for this operation was to “protect the interests of both the state and Lusa.”
Thus, “an assessment of the company’s capital” was carried out by an “independent organization”, “the repayment of the debt that the companies of the Global Media group” owed to Lusa, and “changes in the agency’s management model that ensure its editorial independence is free from any risk of political interference.”
“The ultimate success of the operation,” according to the government, “will always depend on the simultaneous repayment of the debt that the Global Media group companies have accumulated over the years to Lusa.”
The remaining private shareholders of Lusa (NP Notícias de Portugal), Público Comunicação Social and Empresa do Diário do Minho “were informed of the negotiations and were questioned about their possible interest in monitoring increased government participation.”
On November 22, 2023, the General Directorate of Treasury and Finance submitted a “formal acquisition proposal” on behalf of the state, opening a “demanding and confidential” negotiation process that “included the full settlement of Global group’s debt.” and Lusa.”
But in order to complete the negotiations, after the resignation of the prime minister, the negotiations “have always been associated with the presence of broad political commitment, a need that was recognized already in August and which current political circumstances have only made even more urgent.” Antonio Costa, which led to the calling of early elections.
Wednesday’s statement also said Culture Minister Pedro Adau Silva “was informed of the PSD position, which was quickly made public in several media outlets,” that “any decision” must be taken by the next government.
Thus, “the conditions for completing the operation were no longer met,” and all participants in the negotiations were informed of this.
In the text signed by the ministry, it is justified that the acquisition by the state of “an enhanced shareholder position in Lusa” had a dual purpose: to have in the news agency “a guarantor of the autonomy of the agency and a tool for placing it decisively at the service of social communications and journalism.”
The project will also include the “broader strategy” of “changing the agency’s management model and secondly making its services available free of charge to all media outlets,” which the Lusa government and administration have been working on and will be rolled out in 2024.
The new agency oversight body that will be created will have “effective powers of appointment of company management”, consisting of associations representing the press, radio and television, national and regional, public and private media, the Union of Journalists and representatives of Lusa, mainland workers municipalities and regional governments.
Author: Lusa
Source: CM Jornal
I’m Dave Martin, and I’m an experienced journalist working in the news industry. As a part of my work, I write for 24 News Reporters, covering mostly sports-related topics. With more than 5 years of experience as a journalist, I have written numerous articles on various topics to provide accurate information to readers.