65 the end of Alfonsín’s presidency in 1989, and his policies, meant to induce a period of economic liberalization, made it much easier for media monopolies to grow in other, previously untouchable sectors. Menem’s legislation mandated the privatization of all state-owned commercial stations, lifted restrictions that had previously prevented newspaper owners from entering the broadcast arena, and enabled print media companies like Grupo Clarín to dominate the broadcast (cable and satellite television and radio) sector (Macrory, 2013). Clarín, which originally had begun as a newspaper daily, was beginning to see that, with Menem’s new policies, it could become much more. By the time Menem became president, Clarín already had the highest circulation of any Spanish-speaking newspaper, and its growth did not stop there (FundingUniverse, 2005). Menem’s legislation allowed Clarín to purchase its first television and radio stations, Channel 13 and Radio Mitre, respectively, in 1990. Other prominent purchases in the broadcast media sector, including that of newcomer Multicanal S.A. in 1992, led Clarín to rebrand itself under the name Grupo Clarín in 1995. While new policies allowed Grupo Clarín to expand its reach though television and radio, its primary objective was still to grow its print media assets. In 1997, Clarín, as well as print rival La Nación, joined consortium Cimeco S.A., which acquired newspapers in the region. The two print giants purchased a combined 85% of Los Andes (Mendoza) and La Voz del Interior (Córdoba), two of Argentina’s largest provincial newspapers, for $170M (FundingUniverse, 2005). In the final years of Menem’s presidency, Grupo Clarín dominated the media industry and boasted numbers that were some of the highest not only in Argentina but also in South America. FundingUniverse (2005), which compiles histories of companies around the world, noted that, [b]y 1998 Grupo Clarín was reaching three out of every four Argentine homes. Its eponymous newspaper had the highest circulation in the Hispanic world, and Multicanal was the largest cable system in Latin America, with a network covering Buenos Aires and the principal cities of eight provinces. The AM and FM radio stations each rated as the most listenedto ones in Buenos Aires. Channel 13 still ranked second among over-the-air television stations; its highest-rating program was a Sunday evening soccer review produced by TyC. Through Prima S.A., a subsidiary founded in 1997, Ciudad Internet was Argentina’s second largest Internet service provider. Prima’s holdings also included a broadband-access data network. Grupo Clarín also held half of Audiotel, a search engine. As Grupo Clarín further diversified its assets, it became clear that the media company was beginning the process of horizontal integration within the media sector. Not only was the group making more money than ever before but also it was growing in its power and influence. When Argentina fell into a deep recession at the end of Menem’s second term in 1999, Grupo Clarín controlled enough assets to withstand a large financial loss. Other smaller news outlets, however, were pushed into bankruptcy or were acquired by other companies. With such daunting economic issues to deal with, however, Argentina did not prioritize the media sector in its reforms. Fernando de la Rúa, Ramón Puerta, Adolfo Rodríguez Saá, Eduardo Camaño, and Eduardo Duhalde all saw brief stints as head of Argentina between 1999 and 2003 but focused their efforts primarily on bringing the country out of a devastating recession. In May 2003, Néstor Kirchner was elected as president and served until 2007, thus ending the cycle of short-term presidencies. Kirchner and Grupo Clarín had a largely positive relationship, each benefiting from the other, especially in Kirchner’s last year as president. In what was essentially his final act as president of Argentina, Kirchner allowed the merger of Argentina’s two largest cable providers: Cablevisión and Multicanal. In an agreement between Grupo Clarín and New York–based Fintech Advisory, a bond fund, the two groups bought the remaining 40% of Cablevisión that neither owned, and Fintech Advisory acquired an undisclosed percentage of Multicanal from Grupo Clarín in a deal worth an estimated $1.1B. At the time, the deal meant Grupo Clarín and
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