Grupo Globo now owns a large part of Eletromidia’s shares

It was announced last Monday (04) the acquisition of a further 47.09% of the company Eletromidia by Grupo Globo, which now holds a total of 74.09% of the company, becoming the majority controlling shareholder.

Globe and Electromedia

Eletromidia stands out in the “out-of-home” field, that is, advertising that takes place outside the home, such as billboards or big screens in shopping malls. Vesuvius LBO, a fund management company and former controller of Eletromidia, sold its shares in the company to Grupo Globo for R$27 per share, totaling an average of R$1.78 billion.

Grupo Globo had already been showing interest in Eletromidia for some time. In 2022, both companies signed a partnership so that Eletromidia could use Globo's content in its advertisements. In 2023, the group purchased 8% of Eletromidia's shares, which would complement the strategies already in place at Globo. “We also identify with the digitalization journey that Eletromidia is going through, a very well-positioned Brazilian company with strong synergy with Globo’s business portfolio” Said Paulo Marinho, CEO of Globo at the time, to the Meio & Mensagem portal. At the end of the same year, Globo already held 27.5% of Eletromidia's shares.

_{Rede Globo logo (Photo: reproduction/Sérgio Ripardo/Bloomberg Línea)}

In the coming days, Globo is expected to carry out a Public Offering for the Acquisition of Shares (OPA) through the Securities and Exchange Commission (CVM), a process that aims to delist the company's capital and increase control when purchasing the remaining shares. In this process, Globo must pay around R$2.7 billion.

Out-of-home advertising market

The out-of-home advertising niche has seen considerable growth this year. In the first quarter of 2024, the sector experienced a 35% increase compared to the same period last year. According to market data, investments were also 64% higher compared to the same period.

Globo's entry into the market justifies and increases expectations of an even greater investment in “out-of-home” advertising.

Featured photo: Eletromidia panel (Reproduction/disclosure/Eeletromidia/Economic News Brasil)