Televisa Invests in Nextel Mexico

RESTON/MEXICO CITY: Televisa is acquiring a 30-percent interest in wireless operator Nextel Mexico for $1.44 billion, positioning the Mexican broadcaster to offer the first quad-play package—pay TV, broadband, fixed line and mobile telecommunications—in the country.

"With this partnership, we are accessing a platform with an experienced management team and a solid track record in the Mexican telecommunications industry," said Emilio Azcarraga Jean, the chairman and CEO of Grupo Televisa. "There are significant synergies between Nextel Mexico’s wireless offerings and our extensive base of pay-TV subscribers. With this venture we will be able to offer to our customer base the first quadruple play in Mexico, which paves the way for a successful integrated media and telecom strategy. In addition, with the various Televisa properties, Nextel Mexico will have access to an unparalleled media and marketing platform."

Under the terms of the deal, which values Nextel Mexico at $4.3 billion, NII Holdings will retain the remaining 70-percent stake. Televisa has the option to purchase a further 7.5-percent interest on either the third or fourth anniversary of the completion of the initial investment. Peter Foyo will continue to lead Nextel Mexico as president. The investment agreement is conditioned upon the Nextel/Televisa consortium being awarded licenses to use specified amounts of spectrum in the upcoming auctions in Mexico, as well as other customary closing conditions.

"We are thrilled to be moving forward with this exciting joint venture with Televisa, both because of the new opportunities it will create for our wireless business in Mexico and because of its potential to transform our business for the future," said Steve Dussek, CEO of NII Holdings. "We believe that the powerful combination of NII’s expertise in the wireless communications business and Televisa’s extensive offerings as a market leader in broadcast media services, programming and content, broadband data, and fixed telephony, will create a first of its kind opportunity to provide customers in Mexico the broadest selection of high quality communications and media products and services."