Prime Highlights-
- Televisa and Fintech Holdings buy AT&T’s Mexican unit for $2 billion in cash, setting up a contest with America Movil.
- The deal lifts Televisa’s total Mexican subscriber share to 19 percent from 8 percent, adding 24.7 million AT&T customers.
Key Facts-
- Fintech, owned by David Martinez, holds 22.3 percent of Televisa and takes 50 percent of the consortium.
- AT&T will focus on its US fiber and 5G businesses and advanced connectivity after the sale.
Background-
Grupo Televisa and Fintech Holdings have signed a $2 billion cash agreement to buy AT&T’s Mexican business, and the move hands Televisa a new growth avenue in telecoms. Mexico has seen few acquisitions this large in recent years.
Investors responded warmly. New York-listed Televisa gained 5 percent in after-hours trading, and AT&T finished the session up 1.6 percent at $22.85. Scotiabank called the price a bargain.
The acquired unit is Mexico’s second-largest mobile operator behind America Movil’s Telcel and serves about 24.7 million subscribers. Scotiabank estimates the purchase will lift Televisa’s slice of the country’s fixed and wireless market from 8 percent to 19 percent.
Fintech, the investment vehicle of Mexican billionaire David Martinez, owns 22.3 percent of Televisa and will hold half of the buying group. Scotiabank said the modest price and Fintech’s presence leave the new owners more capital for network upgrades. The bank also sees room for a direct-to-cell partnership with providers such as Starlink to extend reach.
Televisa is making its second move into telecoms, building on lessons from its earlier attempt. AT&T plans to channel its resources into US fiber, 5G and advanced connectivity for an AI-powered future.
Mexican regulators will review the deal. Televisa said available cash and secured financing will fund the purchase. The unit reported revenue of 85.4 billion pesos ($4.65 billion) and operating income of 1.4 billion pesos.
