Viacom set to acquire Argentina’s Telefonica for $345 million

The deal, subject to regulatory approval, is a strategic one for Viacom since the Argentinian pay channel has a subscription base of 26.8 million subscribers, covering 95% of Argentina. The channel has a strong following in the Americas as well.

Viacom Inc. has disclosed that it has acquired Argentine broadcaster Television Federal SA from telecom Argentinian carrier Telefonica SA for $345 million.

This strategic acquisition will help Viacom to boost its presence in Latin America and in Argentina. Television Federal SA is also a content producer.

The deal includes the brands and the assets, including a pay TV channel that is seen throughout the Americas.

Of late, Viacom International Media Networks has been struggling with declining revenues from ads and ratings. This acquisition is a bright spot for the company.

Currently Telefe’s distribution network covers 95% of all Argentinian households, and has a subscription base of 26.8 million subscribers.

The broadcaster will be led by Pierluigi Gazzolo, president of VIMN Americas.

The deal, subject to regulatory approval, is expected to add to Viacom’s fiscal earnings in 2017.

According to a spokesman for Argentinian national telecoms regulator, Enacom, the deal has yet to be approved by it.

With Enacom’s board meeting once a month, according to its spokesman it is unlikely to clear the deal in its next meeting, which only means, it would be considered only in December.

UBS Investment Bank served as Viacom’s financial adviser, while M.& M. Bomchil and Shearman & Sterling acted as its legal adviser.

For Telefónica, Citigroup and DLA Piper acted as its advisers, while A & F Allende Ferrante provided legal counsel.

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