Ricardo Salinas Pliego
Encyclopedia
Ricardo Benjamín Salinas Pliego (born 1956) is a Mexican
businessman and one of Forbes
World's Richest People since 2000. He serves as President and CEO of Grupo Salinas
and Grupo Elektra
, two holdings
with interests vested in telecommunications, media and retail stores, among those TV Azteca
, Elektra, Iusacell
, Unefon
, and Banco Azteca
.
, which includes several the largest companies in Mexico, Mr. Salinas has spearheaded the promotion of free trade, government deregulation, and foreign investment.
Grupo Salinas began as a family-owned furniture manufacturing company called Salinas & Rocha founded in 1906 by Mr. Salinas’ great-grandfather, Benjamin Salinas. In 1950, Mr. Salinas’ grandfather created Grupo Elektra
, and when Ricardo Salinas became CEO of the company in 1987, Elektra averted financial distress following the devaluation of the peso. Mr. Salinas refocused Elektra on basic products: appliances, electronics, and furniture. Significantly, he developed at Elektra a vast new consumer market among Mexico’s lower middle income consumers by providing credit sales and diverse financial products and services.
Grupo Elektra
expanded further and became Mexico’s biggest consumer-finance company when, in 2002, it won the first banking license granted to any Mexican institution in nearly a decade. The strategy was to build new markets by creating new buying power among classes of people largely ignored by most other major Mexican businesses.
Mr. Salinas is also chairman of TV Azteca
, one of the world’s two largest producers of Spanish- language television programming. It is one of only two nationwide broadcasters in Mexico, and is now the most profitable integrated broadcaster in the world. Under his leadership, TV Azteca has broken Mexico’s long-standing television monopoly through the successful privatization of networks Azteca 13 and Azteca 7.
In 2001, TV Azteca launched Azteca America
, a wholly owned Spanish-language broadcasting network aimed at the 40 million-strong Hispanic population of the United States. Azteca America has affiliates in 62 markets, including Los Angeles, New York, Chicago, Miami, and Houston, reaching 89 percent of the Hispanic population in the U.S.
Unefon is another Grupo Salinas company, a telecommunications company that built its client base to 1.4 million subscribers and generated EBITDA of more than U.S. $110 million after just three years in operation. Unefon covers 19 cities with its own network and reaches an additional 23,000 urban areas through a capacity exchange and roaming agreement with Grupo Iusacell–a company that Mr. Salinas purchased from Verizon and Vodafone in 2003, when these global wireless providers agreed to tender 75% of Grupo Iusacell’s stock to Movil@ccess. Telecosmo, was created by Mr. Salinas in 2000, becoming Mexico’s first wireless broadband ISP.
Mr. Salinas formed the nonprofit Fundación Azteca
in 1997 to address a broad range of social problems with ongoing campaigns in healthcare and nutrition, education, and the protection of the environment. It is a foundation that finances and supports other foundations, thus leveraging its impact exponentially. Fundación Azteca has raised millions of dollars, benefiting hundreds of thousands of lives. Today Fundación Azteca is one of the highest-recognized non-profits in Latin America. In 2005, Mr. Salinas launched Fundación Azteca America, which is committed to improving the well-being of the Hispanic community in the United States by functioning as a nationwide bridge between donors and Hispanic foundations.
He is also accused of taking over with violence the facilities of CNI Canal 40 in 2003. The latter used to be an independent TV channel which broadcast from the north of Mexico City.
In addition, his banks have been accused of abusing microlending practices in Mexico. This is a practice that should help low income people become entrepreneurs but is often abused by charging poor people unreasonable interest rates.
, and when Ricardo Salinas became CEO of the company in 1987, Elektra had fewer than 60 stores and averted financial distress following the devaluation of the peso. Mr. Salinas refocused Elektra on basic products: appliances, electronics, and furniture. Significantly, he developed a vast new consumer market among Mexico’s lower-middle income consumers by providing credit sales (guided by careful risk-management practices) and diverse financial products and services, including money transfers via an alliance with Western Union. In just a few years, through organic expansion and acquisitions, Mr. Salinas built Grupo Elektra
into Latin America’s largest specialty retailer.
Grupo Elektra expanded further and became Mexico’s biggest consumer-finance company when, in 2002, it won the first banking license granted to any Mexican institution in nearly a decade. The strategy was to build new markets by creating new buying power among classes of people largely ignored by most other major Mexican businesses. In 2003, Grupo Elektra was granted a license to operate a pension-management business branded as Afore Azteca which set new low commission standards, and increasing the range of services for clients overlooked by financial services firms in Mexico. Similarly, Grupo Elektra launched Seguros Azteca
, an insurance company designed to bring basic insurance products to the vastly underinsured mass market.
Mr. Salinas is also chairman of TV Azteca
, the second largest producers of Spanish language television programming in the world. It is one of only two nationwide broadcasters in Mexico.
TV Azteca was founded in 1993 when an investor group led by Mr. Salinas bought from the Mexican government two national television licenses coupled with television studios full of decrepit broadcasting equipment. Under his leadership, TV Azteca has broken Mexico’s long-standing television monopoly through the successful privatization of the Azteca 13 and Azteca 7 networks. Thereafter, a duopoly has been established: TV Azteca and Televisa
remain the only nationwide TV broadcasters in Mexico, a country of 107 million.
Most recently, Mr. Salinas created the Empresario Azteca program and its parallel, Empresario Azteca Association (ASMAZ), as a broad program to support small businesses the core of Mexico’s economy. This initiative applies the breadth and depth of Grupo Salinas’ management expertise, financing capabilities, market strength, purchasing power, and its extensive distribution network to provide training, consulting, financing, equipment procurement, and other resources to small businesses throughout the country.
Mr. Salinas also formed the nonprofit Fundación Azteca in 1997 to address a broad range of social problems with ongoing campaigns in healthcare and nutrition, education, and the protection of the environment. It is a foundation that finances and supports other foundations, thus leveraging its impact exponentially. Fundación Azteca has raised millions of dollars, benefiting hundreds of thousands of lives. In 2005, Mr. Salinas launched Fundación Azteca America, which is committed to improving the well-being of the Hispanic community in the United States by functioning as a nationwide bridge between donors and Hispanic foundations.
In 2001, TV Azteca launched Azteca America
, a wholly owned Spanish-language broadcasting network aimed at the 40 million-strong Hispanic population of the United States. Azteca America has affiliates in 62 markets, including Los Angeles, New York, Chicago, Miami, and Houston, reaching 90 percent of the Hispanic population in the U.S.
In July 2003, Movil@ccess, also a Grupo Salinas telecommunications operator, completed a successful tender offer to purchase 75% of Grupo Iusacell, which was facing bankruptcy. Since then, Iusacell’s financial performance, quality of service, and technology platforms have improved noticeably.
On November 18, 2008 it was announced that the Mexican Ricardo Salinas Pliego, current owner of the Mexican broadcaster TV Azteca, purchased 28 percent of the bankrupted American retailer Circuit City.
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
businessman and one of Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
World's Richest People since 2000. He serves as President and CEO of Grupo Salinas
Grupo Salinas
Grupo Salinas is a Group formed by several companies focused on many different sectors. Grupo Salinas started as a retail store, but since Ricardo Salinas Pliego, its current President took over the company, Grupo Salinas began to diversify....
and Grupo Elektra
Grupo Elektra
Grupo Elektra is a Mexican financial and retail corporation owned by Grupo Salinas. It is listed on the New York Stock Exchange , the Bolsa Mexicana de Valores and on the Spanish Stock Market Latibex ....
, two holdings
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
with interests vested in telecommunications, media and retail stores, among those TV Azteca
TV Azteca
Azteca, is the second largest Mexican television entertainment. It was established in 1983 as the state-owned Instituto Mexicano de la Televisión , a holding of the national TV networks channel 13 and 7 and was privatized under its current name in 1993 and now is part of Grupo Salinas...
, Elektra, Iusacell
Iusacell
Grupo Iusacell is Mexico's #3 mobile operator.-Services:The company provides cellular services reaching about 90% of Mexico's population, including Mexico City and received more licenses to cover the remaining regions in early 2005. It has more than 3.5 million subscribers...
, Unefon
Unefón
Unefón is a Mexican mobile phone operator owned by Iusacell. The company was partially owned by Grupo Salinas and Mexican industrial Grupo Saba, reached more than 2.5 million subscribers in 2006 and its network is CDMA only, using no analog base stations. After a capacity exchange agreement with...
, and Banco Azteca
Banco Azteca
Banco Azteca operates in Mexico, Panama, Guatemala, Honduras, Peru and Brazil and is already among the largest banks in Mexico in terms of coverage...
.
Biography
Ricardo B. Salinas was one of Latin America’s leading corporate figures and entrepreneurs. As chairman and founder of Grupo SalinasGrupo Salinas
Grupo Salinas is a Group formed by several companies focused on many different sectors. Grupo Salinas started as a retail store, but since Ricardo Salinas Pliego, its current President took over the company, Grupo Salinas began to diversify....
, which includes several the largest companies in Mexico, Mr. Salinas has spearheaded the promotion of free trade, government deregulation, and foreign investment.
Grupo Salinas began as a family-owned furniture manufacturing company called Salinas & Rocha founded in 1906 by Mr. Salinas’ great-grandfather, Benjamin Salinas. In 1950, Mr. Salinas’ grandfather created Grupo Elektra
Grupo Elektra
Grupo Elektra is a Mexican financial and retail corporation owned by Grupo Salinas. It is listed on the New York Stock Exchange , the Bolsa Mexicana de Valores and on the Spanish Stock Market Latibex ....
, and when Ricardo Salinas became CEO of the company in 1987, Elektra averted financial distress following the devaluation of the peso. Mr. Salinas refocused Elektra on basic products: appliances, electronics, and furniture. Significantly, he developed at Elektra a vast new consumer market among Mexico’s lower middle income consumers by providing credit sales and diverse financial products and services.
Grupo Elektra
Grupo Elektra
Grupo Elektra is a Mexican financial and retail corporation owned by Grupo Salinas. It is listed on the New York Stock Exchange , the Bolsa Mexicana de Valores and on the Spanish Stock Market Latibex ....
expanded further and became Mexico’s biggest consumer-finance company when, in 2002, it won the first banking license granted to any Mexican institution in nearly a decade. The strategy was to build new markets by creating new buying power among classes of people largely ignored by most other major Mexican businesses.
Mr. Salinas is also chairman of TV Azteca
TV Azteca
Azteca, is the second largest Mexican television entertainment. It was established in 1983 as the state-owned Instituto Mexicano de la Televisión , a holding of the national TV networks channel 13 and 7 and was privatized under its current name in 1993 and now is part of Grupo Salinas...
, one of the world’s two largest producers of Spanish- language television programming. It is one of only two nationwide broadcasters in Mexico, and is now the most profitable integrated broadcaster in the world. Under his leadership, TV Azteca has broken Mexico’s long-standing television monopoly through the successful privatization of networks Azteca 13 and Azteca 7.
In 2001, TV Azteca launched Azteca America
Azteca América
Azteca América is a broadcast television network marketed toward Spanish-speaking families residing in the United States. As a rapidly-growing Spanish language network, Azteca América now reaches 89% of the Hispanic households in the U.S., operating in sixty-two markets nationwide. Wholly owned by...
, a wholly owned Spanish-language broadcasting network aimed at the 40 million-strong Hispanic population of the United States. Azteca America has affiliates in 62 markets, including Los Angeles, New York, Chicago, Miami, and Houston, reaching 89 percent of the Hispanic population in the U.S.
Unefon is another Grupo Salinas company, a telecommunications company that built its client base to 1.4 million subscribers and generated EBITDA of more than U.S. $110 million after just three years in operation. Unefon covers 19 cities with its own network and reaches an additional 23,000 urban areas through a capacity exchange and roaming agreement with Grupo Iusacell–a company that Mr. Salinas purchased from Verizon and Vodafone in 2003, when these global wireless providers agreed to tender 75% of Grupo Iusacell’s stock to Movil@ccess. Telecosmo, was created by Mr. Salinas in 2000, becoming Mexico’s first wireless broadband ISP.
Mr. Salinas formed the nonprofit Fundación Azteca
Fundación Azteca
Fundación Azteca is a Mexican non-profit organization that promotes social responsibility founded in 1997 and owned by Grupo Salinas.It attempts to match social needs with organizations or individual willing to commit to satisfy them...
in 1997 to address a broad range of social problems with ongoing campaigns in healthcare and nutrition, education, and the protection of the environment. It is a foundation that finances and supports other foundations, thus leveraging its impact exponentially. Fundación Azteca has raised millions of dollars, benefiting hundreds of thousands of lives. Today Fundación Azteca is one of the highest-recognized non-profits in Latin America. In 2005, Mr. Salinas launched Fundación Azteca America, which is committed to improving the well-being of the Hispanic community in the United States by functioning as a nationwide bridge between donors and Hispanic foundations.
Criticism
Ricardo B. Salinas is one of Latin America’s leading corporate figures and entrepreneurs, although he has been involved in a series of political and financial scandals (which include investigations by the American Securities and Exchange Commission and the Mexican Comision Nacional Bancaria y de Valores). Mr. Salinas was charged by the American Securities and Exchange Commission in January 2005 with being engaged in an elaborate scheme to conceal Salinas’s role in a series of transactions through which he personally profited by $109 million. The SEC complaint also alleged that Salinas and Padilla sold millions of dollars of TV Azteca stock while Salinas’s self-dealing remained undisclosed to the market place. This was settled in September 2006 with Mr. Salinas required to pay $7.5M while not admitting guilt.He is also accused of taking over with violence the facilities of CNI Canal 40 in 2003. The latter used to be an independent TV channel which broadcast from the north of Mexico City.
In addition, his banks have been accused of abusing microlending practices in Mexico. This is a practice that should help low income people become entrepreneurs but is often abused by charging poor people unreasonable interest rates.
Grupo Salinas
The origins of Grupo Salinas are set in 1906, when Mr. Salinas’ great grandfather, Benjamín Salinas, created Salinas & Rocha, a modest family-owned furniture manufacturing company. In 1950, Mr. Salinas’ grandfather, Hugo Salinas Rocha, created Grupo ElektraGrupo Elektra
Grupo Elektra is a Mexican financial and retail corporation owned by Grupo Salinas. It is listed on the New York Stock Exchange , the Bolsa Mexicana de Valores and on the Spanish Stock Market Latibex ....
, and when Ricardo Salinas became CEO of the company in 1987, Elektra had fewer than 60 stores and averted financial distress following the devaluation of the peso. Mr. Salinas refocused Elektra on basic products: appliances, electronics, and furniture. Significantly, he developed a vast new consumer market among Mexico’s lower-middle income consumers by providing credit sales (guided by careful risk-management practices) and diverse financial products and services, including money transfers via an alliance with Western Union. In just a few years, through organic expansion and acquisitions, Mr. Salinas built Grupo Elektra
Grupo Elektra
Grupo Elektra is a Mexican financial and retail corporation owned by Grupo Salinas. It is listed on the New York Stock Exchange , the Bolsa Mexicana de Valores and on the Spanish Stock Market Latibex ....
into Latin America’s largest specialty retailer.
Grupo Elektra expanded further and became Mexico’s biggest consumer-finance company when, in 2002, it won the first banking license granted to any Mexican institution in nearly a decade. The strategy was to build new markets by creating new buying power among classes of people largely ignored by most other major Mexican businesses. In 2003, Grupo Elektra was granted a license to operate a pension-management business branded as Afore Azteca which set new low commission standards, and increasing the range of services for clients overlooked by financial services firms in Mexico. Similarly, Grupo Elektra launched Seguros Azteca
Seguros Azteca
Seguros Azteca is a Mexican life insurance company owned by Grupo Salinas since 2003. The Chief Executive Officer is Alfredo Honsberg.On October 2003, Grupo Elektra was authorized by the Secretaría de Hacienda y Crédito Público to acquire a private insurance company in Mexico that was re-branded...
, an insurance company designed to bring basic insurance products to the vastly underinsured mass market.
Mr. Salinas is also chairman of TV Azteca
TV Azteca
Azteca, is the second largest Mexican television entertainment. It was established in 1983 as the state-owned Instituto Mexicano de la Televisión , a holding of the national TV networks channel 13 and 7 and was privatized under its current name in 1993 and now is part of Grupo Salinas...
, the second largest producers of Spanish language television programming in the world. It is one of only two nationwide broadcasters in Mexico.
TV Azteca was founded in 1993 when an investor group led by Mr. Salinas bought from the Mexican government two national television licenses coupled with television studios full of decrepit broadcasting equipment. Under his leadership, TV Azteca has broken Mexico’s long-standing television monopoly through the successful privatization of the Azteca 13 and Azteca 7 networks. Thereafter, a duopoly has been established: TV Azteca and Televisa
Televisa
Televisa is a Mexican multimedia conglomerate, the largest mass media company in Latin America and in the Spanish-speaking world. It is a major international entertainment business, with much of its programming airing in the United States on Univision, with which it has an exclusive contract...
remain the only nationwide TV broadcasters in Mexico, a country of 107 million.
Most recently, Mr. Salinas created the Empresario Azteca program and its parallel, Empresario Azteca Association (ASMAZ), as a broad program to support small businesses the core of Mexico’s economy. This initiative applies the breadth and depth of Grupo Salinas’ management expertise, financing capabilities, market strength, purchasing power, and its extensive distribution network to provide training, consulting, financing, equipment procurement, and other resources to small businesses throughout the country.
Mr. Salinas also formed the nonprofit Fundación Azteca in 1997 to address a broad range of social problems with ongoing campaigns in healthcare and nutrition, education, and the protection of the environment. It is a foundation that finances and supports other foundations, thus leveraging its impact exponentially. Fundación Azteca has raised millions of dollars, benefiting hundreds of thousands of lives. In 2005, Mr. Salinas launched Fundación Azteca America, which is committed to improving the well-being of the Hispanic community in the United States by functioning as a nationwide bridge between donors and Hispanic foundations.
In 2001, TV Azteca launched Azteca America
Azteca América
Azteca América is a broadcast television network marketed toward Spanish-speaking families residing in the United States. As a rapidly-growing Spanish language network, Azteca América now reaches 89% of the Hispanic households in the U.S., operating in sixty-two markets nationwide. Wholly owned by...
, a wholly owned Spanish-language broadcasting network aimed at the 40 million-strong Hispanic population of the United States. Azteca America has affiliates in 62 markets, including Los Angeles, New York, Chicago, Miami, and Houston, reaching 90 percent of the Hispanic population in the U.S.
In July 2003, Movil@ccess, also a Grupo Salinas telecommunications operator, completed a successful tender offer to purchase 75% of Grupo Iusacell, which was facing bankruptcy. Since then, Iusacell’s financial performance, quality of service, and technology platforms have improved noticeably.
On November 18, 2008 it was announced that the Mexican Ricardo Salinas Pliego, current owner of the Mexican broadcaster TV Azteca, purchased 28 percent of the bankrupted American retailer Circuit City.