(AFP PHOTO)
Businessman Naguib Sawiris said he plans to increase his share in television channel “Euronews” to a majority share, explaining that capital injection will be used to expand the channel’s digital activities.
Sawiris, part of the family behind Orascom Group, is considered Egypt’s second richest man, and is also member of the richest family in the country.
In an unprecedented modification in the channel’s ownership structure, Sawiris said he agreed to acquire 53% of Euronews in the context of a capital increase of € 35m ($39m). Sawiris will now join existing shareholders, which includes 23 public broadcasting bodies.
Sawiris declared in a video conference on Friday that he intends to maintain the Euronews’ neutrality, whilst at the same time reaping financial gain.
“There is no doubt that it takes three, four or five years to gain revenues, but I’m not pursuing a quick gain,” Sawiris said. “The age group watching TV targets those of 40 years and older, so if we do not prepare for the next generation with an increased focus on the digital world and social communication, the channel may be jeopardised within 20 or 30 years. ”
Euronews CEO Michael Peters said the channel is trying to compete with many of the giants but does not have the resources to invest heavily in digital activities.
Peters said that multi-languages channel revenues now come from a variety of sources, including: funding from the European Union (EU); the public and private sectors; advertising; distribution rights; and license fees from shareholders.
Euronews was established in 1992 and is based in Lyon, France. The channel aims to create a news network providing information from a European perspective. The first broadcast was on 1 January 1993 from Lyon. The channel was founded by a group of nine European public broadcasters and Egypt’s ERTU (Egyptian Radio and Television Union).
