From Camelô to Tycoon: Silvio Santos’ journey in building a billion-dollar empire

The founder of SBT created a group of companies that included Banco PanAmericano, which made him one of Forbes magazine's list of billionaires in 2013. Silvio Santos passed away this Saturday (17), aged 93.

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Silvio Santos, died in the early hours of this Saturday (17), aged 93 - Photo Reproduction / SBT

Silvio Santos is an emblematic figure and one of Brazil's television icons, known for his inspiring career and charismatic presence on television. His journey, which began on the streets as a street vendor, culminated in the construction of a billion-dollar empire, exemplifies the rise of a visionary entrepreneur and the transformation of the media sector in the country. Silvio Santos, died in the early hours of this Saturday (17), aged 93. Founder and owner of the Brazilian Television System (SBT), Silvio built a successful decades-long business career, which culminated in the creation of the Silvio Santos Group (GSS), currently a billion-dollar conglomerate.

The First Steps: Humble Beginnings and Ambition

Born Senor Abravanel on December 12, 1930, in Rio de Janeiro, Silvio Santos grew up in an environment of modesty. From a young age, he worked as a street vendor, selling toys and other products on the streets. His communication skills and entrepreneurial spirit began to stand out at this stage, creating the basis for his future career. Silvio began his career as a street vendor, where he demonstrated from an early age that he was a natural salesman, with exceptional communication and persuasion skills.

These qualities were fundamental to the success of Baú da Felicidade, which took over in 1958. This was the starting point for the creation of the Silvio Santos Group (GSS), which over the years expanded into several sectors, including cosmetics, capitalization, media and communication, real estate development and hospitality. In addition to SBT, companies such as Jequiti and Liderança Capitalização are also part of the family business.

The Transition to Entertainment

At the age of 23, Silvio began to gain notoriety as a radio announcer. His popularity grew quickly, and he began hosting television shows. In 1962, with the help of investors, he launched the program "Programa Silvio Santos", which quickly became a success and gained a loyal audience.

The SBT Foundation

Silvio Santos' success as a businessman and presenter had already awakened in him the desire to have his own television station. In 1976, he founded TVS. With the obtaining of new transmission concessions, the broadcaster evolved and in 1981, Silvio Santos founded the Brazilian Television System (SBT). At its premiere, the renowned Silvio Santos Program was aired. Initially facing financial difficulties and market resistance, SBT quickly established itself as one of Brazil's main TV channels.

The channel's success was driven by innovative programming and Silvio's charismatic personality, which became a trademark of his company. Currently, SBT has 114 stations across the country, reaching around 70 million homes. Over the years, its programming included attractions that have become iconic in the history of Brazilian television, such as "Topa Tudo Por Dinheiro" and "Roda a Roda", both presented by Silvio, and "Domingo Legal", led by Gugu Liberato, who passed away in 2019.

Expansion and Diversification

Silvio Santos' vision to expand his empire went beyond television. He diversified his investments into several areas, including radio, real estate, and even the banking sector with the creation of Banco Panamericano. His ventures expanded to the international market, expanding his reach and influence. In 2013, Silvio Santos joined Forbes magazine's exclusive list of billionaires, with a fortune estimated at US$$ 1,3 billion. At the time, the magazine highlighted that he became the “first Brazilian billionaire celebrity”.

At the time, the Silvio Santos Group had more than 30 companies in its portfolio, recording annual sales of US$ 2 billion. Silvio's entry into the billionaire rankings occurred two years after the sale of the bank Pan-American, of which he was the controlling shareholder. BTG Pactual acquired the bank for R$ 450 million, amid an accounting scandal involving the institution.

Jequiti

Observing the cosmetics market, Silvio Santos founded Jequiti in October 2006, to compete in a sector dominated by big brands such as Natural and Avon in direct sales, also known as "door to door". With affordable prices, Jequiti entered the market with a diverse line of products for bath, face, body, hair and makeup. At first, the company focused its operations on the South and Southeast regions, expanding to other areas from 2007 onwards.

Jequiti was the second cosmetics brand of the Silvio Santos Group, which had already acquired, in March 2006, SSR Comércio de Cosméticos, owner of the Hydrogen brand and licenses for cosmetics under the Disney brand. Currently, Jequiti stands out as one of the largest companies in the sector in Brazil, covering the entire national territory with a portfolio of 260 thousand consultants. The company records its highest sales volume in perfumery products. With an approximate market value of R$ 450 million, there are ongoing negotiations for the sale of Jequiti to the pharmaceutical company Cimed.

PanAmericano bank crisis (and sale)

In November 2010, Banco PanAmericano received a contribution of R$ 2,5 billion from the Credit Guarantee Fund (FGC), with the assets of the Silvio Santos group as collateral. This support was necessary after the Central Bank of Brazil discovered a hole in the institution's accounts. The monetary authority identified that PanAmericano recorded credit portfolios that had already been sold to other banks, in addition to duplicating the sales records of these portfolios. As a result, the bank's balance sheet was artificially inflated.

“I sold the bank”, said Silvio Santos in January 2011, after a series of controversies involving the bank Pan-American, of which he was a controlling shareholder.

At the time, Silvio told journalists that he could not stop selling, as his bank did not cause any losses to anyone. He highlighted that the bank performed well, although it may have been poorly managed, which led to the situation known to all.

“Now I am free. The television [SBT] that you wanted to buy, or that someone else wanted to buy, is no longer for sale. Jequiti is no longer for sale. Lojas do Baú are no longer for sale. The only thing that was sold was the bank”, said Silvio at the time.

The presenter's participation was acquired by BTG Pactual for R$ 450 million. With this acquisition, the institution now owns 34.64% of PanAmericano, with 51% of the common shares, thus guaranteeing control of the bank. In 2013, the Pan-American It was renamed Banco Pan and adopted a new visual identity.

Market Impact and Legacy

Silvio Santos not only transformed the entertainment sector in Brazil, but also established a business model that inspired other entrepreneurs. His management style, based on innovation and direct contact with the public, helped redefine Brazilian television and left a lasting legacy. In September 2022, Silvio Santos stopped presenting his program on Sunday nights.

Since then, Patricia Abravanel, one of his daughters, took charge of the Silvio Santos Program. Daniela Beyruti, another of Silvio's daughters and vice-president of SBT, has been in charge of the broadcaster since her father's departure. SBT has always been a crucial asset of the Silvio Santos Group. When the presenter joined the Forbes billionaires list in 2013, the magazine estimated that 22% of his fortune came from network television.