Yes, there is a limit, and it has two layers: a ratio limit and a number limit. The basis is Art. 19/1(f) of Law No. 6112.

First Limit: The Ratio

Direct total foreign capital in a media service provider may not exceed fifty per cent of the paid-in capital.

Second Limit: The Number

"A foreign natural or legal person may be a direct partner in at most two media service providers."

LimitValue
Total direct foreign share in one organisationAt most 50% of the paid-in capital
Number of organisations one foreigner may be a direct partner inAt most two

Extra Conditions for Indirect Ownership

The subparagraph also addresses circumventing the limit through indirect ownership. Where foreign natural or legal persons become indirect partners in broadcasting organisations by participating in companies that are partners in media service providers, the following are mandatory:

  • The chair of the board of the broadcasting organisation being a Turkish citizen
  • The deputy chair being a Turkish citizen
  • The majority of the board being Turkish citizens
  • The general manager being a Turkish citizen
  • The majority of votes at general meetings of the broadcasting organisation being held by natural or legal persons of Turkish nationality

The Prohibition on Privileged Shares

Subparagraph (g) is complementary: neither domestic nor foreign shareholders may in any way hold privileged shares. That provision closes off the route of establishing management control through a minority holding.

Subparagraph (c) points the same way: the shares of media service providers must be registered shares and usufruct certificates may not be created in favour of any person.

There Are Limits for Domestic Partners Too

Alongside the foreign limit there are two further limits that draw no domestic-foreign distinction (subparagraph d):

LimitValue
Number of terrestrially licensed organisations one may be a partner inAt most four
Share of commercial communication revenueMay not exceed 30% of the sector's total commercial communication revenue

Where thirty per cent is exceeded, a share transfer bringing it below the ratio is made within a ninety-day period given by the Supreme Council; if it is not complied with within that period, an administrative fine is applied for each month.

In Publicly Held Companies

Subparagraph (ç): media service providers may issue and offer capital market instruments to the public within the framework of capital market legislation. In that case the Supreme Council's approval must be obtained before registration with the Capital Markets Board. The requirement of registered shares is not sought for publicly held shares.

The Notification Period

The Position in the Print Press

Law No. 5187 provides no foreign capital limit for the ownership of a periodical. Art. 6 says that natural and legal persons and public institutions may own a periodical; the reciprocity condition in Art. 5 is for the responsible editor, not for ownership. We deal with the foreign journalist side in the foreign journalist press card guide.

Summary

  • Direct total foreign capital in a media service provider may not exceed fifty per cent of the paid-in capital, and one foreigner may be a direct partner in at most two organisations.
  • In indirect ownership, the board chair, deputy chair, board majority and general manager must be Turkish citizens and the majority of votes at general meetings must be held by persons of Turkish nationality.
  • These matters must be expressly stated in the company memorandum.