Yahoo Finance Mexico’s Televisa to Buy Remaining Sky Stake From AT&T
(Bloomberg) -- Grupo Televisa SAB will buy AT&T Inc.’s stake in paid TV business Sky Mexico.
Most Read from Bloomberg
Texas Toll Road Takeover to Cost Taxpayers at Least $1.7 Billion
S&P 500 Falls 1% as Oil Jump Spurs Flight to Bonds: Markets Wrap
Apple Explores Home Robotics as Potential ‘Next Big Thing’ After Car Fizzles
Biden Tells Netanyahu US Support Hinges on Protecting Civilians
After the deal, Televisa will own 100% of Sky, the company said in a statement. Televisa didn’t provide an amount for the transaction but said it would be payable in 2027 and 2028.
Televisa’s latest quarterly results were hindered by falling profitability at Sky, which is expected to continue. Revenue at Sky fell 15% in the fourth quarter from the previous year. The unit had some 160,000 disconnections over the quarter, the company said.
Read More: Televisa’s Sales Drop Again Amid Growing Mexico Competition
“The acquisition seems to be opportunistic, in a declining business, in which we see short paybacks and strong cash flows” for Televisa, Citi analysts wrote in a note. Sky will be merged with izzi, “through which they believe they can extract significant synergies,” the note added.
Televisa shares rose 2.93% to 11.23 pesos at 9:12 a.m. in Mexico City, compared to a 1.35% rise in the country’s benchmark index.
Sky’s current CEO Luis Malvido will leave his post as of April 15, according to the statement. Francisco Valim will replace him while also retaining his current post as CEO of Televisa’s cable unit, izzi.
The merger is subject to regulatory approval, the company added.
(Updates with analyst comment on fourth paragraph, share move on fifth paragraph)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
