Bin Talal Takes Ove LBC/Satellite

UNCLAS BEIRUT 001017 STATE FOR NEA/ELA - SOMERSET, NEA/PPD, R, INR/R/MR INR-PARENT LONDON/POL PARIS/POL WHITE HOUSE FOR NSC USCENTCOM FOR CCPA SIPDIS E.O. 12958: N/A TAGS: PREF PREL KMDR OPRC KPAO KISL KPAL LE SUBJECT: Bin Talal Takes Ove LBC/Satellite ¶1. Saudi multi-billionaire Al Waleed Bin Talal and Lebanese media magnate Pierre El Daher announced on July 8 that Bin Talal raised his stake in El Daher's Lebanese Media Holding (LMH) to around 85 per cent with a value of US 78 million. Bin Talal is now the main shareholder. LMH encompasses three companies owned by El Daher, LBC/SAT, PAC Lmtd., and LBCPLUS. The deal raises LBC/SAT's total capital from 25 million to 123 million. It also includes an additional 20 million in simplified loans. ¶2. Bin Talal used to own 49 percent of the LBC/SAT shares. With his share increase, the channel is now part of the large platform of channels Bin Talal owns. These channels include six Rotana channels and two Fox International Channels. One of the Fox channels is broadcasting movies, e.g., QFox Movies,Q and the second channel, which will broadcast American television Shows is expected to begin in November. El Daher is the "Head of TV Channels" in the new structure and retains the title of CEO of LBC/SAT. ¶3. El Daher is now expected to deliver a five year development plan for all of the channels he manages. A press release announcing the deal said "the increased capital will help strengthen LBC Sat's position in the Arab satellite broadcast market in terms of competitiveness, productivity and financial depth, while maintaining its distinct Lebanese identity... The move is part of a larger strategy that will be implemented over the course of five years, which will encompass growth at LBC Sat and all Rotana TV channels, fully owned by Prince Al Waleed... The long-term development strategy is not limited to the TV stations but is part of a larger development plan for Rotana Holding that will involve TV production, cinema and other projects." ¶4. Terrestrial channel LBCI is not involved in the agreement, but is expected to benefit from it. El Daher said that all programs are usually broadcasted on both the satellite and terrestrial channels. LBC/SAT's financial capabilities will be increased allowing it to produce better quality. El Daher also explained that Bin Talal's step to increase capital at LMH has nothing to do with political ambitions "so far." He said that Bin Talal wants to "build a large content and media distribution group. (And, that) Bin Talal's option, besides building his own channel, is to regroupunder one umbrella, the best TV channels in the egion." Grant