Turkey's Media Sector Under Scrutiny: Implications for Foreign Investors in a Shifting Regulatory Environment

The recent seizure of Can Holding—a media and education conglomerate—by Turkish authorities has ignited global debate about the interplay of political control, financial crime investigations, and media consolidation in Turkey. This case, involving prominent outlets like Haberturk and Show TV, underscores a broader trend of state intervention in the media sector, raising critical questions for foreign investors navigating a regulatory environment increasingly shaped by opaque legal mechanisms and geopolitical volatility.

State Influence and Media Consolidation: A Dual-Edged Sword

According to a report by Reuters, Turkish prosecutors ordered the seizure of Can Holding's assets in September 2025, citing allegations of money laundering, tax evasion, and organized crime Turkish prosecutor orders seizure of media-to-education group Can Holding^[1]. The operation, which transferred control of 121 companies to the Savings Deposit Insurance Fund (TMSF), was framed as a move to combat financial irregularities. However, press freedom advocates, including Reporters Without Borders (RSF), argue that the action reflects a strategic effort to consolidate government control over media outlets, many of which already operate under state influence 2022 Investment Climate Statements: Turkey^[2]. With approximately 90% of Turkey's media estimated to be under government sway, the Can Holding case exemplifies how legal and political tools are increasingly weaponized to suppress dissent and centralize information control Turkish prosecutor orders seizure of media-to-education group Can Holding^[1].

This consolidation aligns with historical patterns of asset seizures in Turkey, where legal enforcement often serves dual purposes: addressing genuine financial crimes while simultaneously reshaping economic power structures. As noted in a country risk report by Gan Integrity, such actions are inconsistently applied, creating an environment where regulatory certainty is elusive Turkey country risk report^[3]. For foreign investors, this duality—anti-corruption rhetoric versus political overreach—poses a significant challenge in assessing long-term risks.

Legal and Economic Governance: A Tenuous Balance

The Can Holding investigation highlights the government's reliance on institutions like the Financial Crimes Investigation Unit to justify asset seizures. Prosecutors allege that the holding's founders, Mehmet Sakir Can and Kemal Can, used their companies to forge documents and channel illicit funds Turkish prosecutor orders seizure of media-to-education group Can Holding^[1]. While these claims, if substantiated, could signal a commitment to economic transparency, critics argue that the legal framework enabling such actions—such as asset peace laws that previously allowed illicit funds to enter the economy with reduced scrutiny—lacks robust safeguards against abuse .

This ambiguity is compounded by Turkey's macroeconomic challenges, including high inflation and currency volatility, which amplify the risks for foreign capital. A 2022 U.S. Department of State report on Turkey's investment climate notes that while the country's strategic location and demographic profile remain attractive, regulatory unpredictability and geopolitical tensions necessitate cautious strategies 2022 Investment Climate Statements: Turkey^[2]. For media and tech investors, the Can Holding case serves as a cautionary tale: even entities with diversified portfolios and international partnerships are not immune to sudden regulatory shifts.

Strategic Recommendations for Foreign Investors

Given these dynamics, foreign investors must adopt a multifaceted approach to mitigate risks while capitalizing on opportunities in Turkey's media sector:

1. Diversification and Due Diligence: Investors should avoid over-concentration in entities with opaque ownership structures. Instead, prioritize partnerships with local stakeholders who possess deep regulatory expertise and can navigate the complexities of Turkey's legal landscape 2022 Investment Climate Statements: Turkey^[2].

2. Geopolitical Risk Assessment: Beyond legal scrutiny, investors must evaluate Turkey's broader geopolitical environment. The country's role as a regional crossroads, coupled with its fluctuating relations with the EU and NATO, introduces variables that could impact media and tech sectors, particularly those involving cross-border data flows Turkey country risk report^[3].

3. Adaptive Investment Strategies: Given the volatility of Turkey's economic policies, investors should remain agile. For instance, the government's recent emphasis on digital media and technology could present opportunities, but these must be weighed against the risk of sudden regulatory tightening 2022 Investment Climate Statements: Turkey^[2].

4. Engagement with International Frameworks: Leveraging international legal protections, such as bilateral investment treaties, may offer a buffer against arbitrary asset seizures. Investors should also monitor the role of institutions like TMSF, which, while tasked with ensuring business continuity during investigations, may inadvertently normalize state control over private enterprises Turkish prosecutor orders seizure of media-to-education group Can Holding^[1].

Conclusion: Navigating Uncertainty in a Shifting Landscape

The Can Holding case is emblematic of Turkey's evolving media and economic governance model, where legal and political imperatives often converge. For foreign investors, the path forward requires a nuanced understanding of both the risks and opportunities inherent in this environment. While the government's anti-corruption rhetoric may appeal to those seeking regulatory reform, the reality of state influence over media and economic assets demands vigilance. By prioritizing diversification, due diligence, and geopolitical awareness, investors can position themselves to navigate the uncertainties of Turkey's media sector while safeguarding returns.