The Mexican government has approved NBC U-owned Telemundo’s investment in upstart Mexican media company Palmas 26 .
Foreigners are barred from owning stakes in Mexican media assets, but investments as “neutral capital,” where the foreign company does not technically have a voting stake in the company, is allowed.
In April, Telemundo announced it had teamed up with Saba to found two companies: a production studio, Estudios Mexicanos Telemundo, and Palmas 26, which will explore options for launching a TV channel in Mexico. Grupo Xtra, owned by Mexican billionaire Isaac Saba Raffoul, will put up 51% stake in Palmas 26 with Telemundo providing the rest of the coin.
NBC parent GE’s Mexican subsidiary was shut out last year by the government from taking a stake in the troubled Canal 40.