Viacom Confirms Telefe Acquisition


NEW YORK: Viacom has confirmed that it is buying Argentina broadcaster Telefe for $345 million.

Bob Bakish, acting president and CEO of Viacom, noted, “Telefe is an outstanding broadcast and production business, and this acquisition will accelerate our growth strategy in Argentina, one of the most advanced and valuable media markets in Latin America. Viacom has an unrivaled track record of combining free and pay-TV networks to deliver strong growth in high-value or high-growth markets, including in the U.K. and India. Working together with Telefe’s highly successful team, we can strengthen Telefe’s market-leading status in Argentina and expand its presence around the world using Viacom’s extensive global network, potentially reaching hundreds of millions of Spanish speakers across Latin and North America, as well as in other markets.”

Antonio Marti, director of business transformation and planning at Telefónica’s chief commercial digital office, said: “Telefe is the market leader which has demonstrated strong operating performance in recent years. This transaction is consistent with Telefónica’s asset portfolio management strategy—focused in value creation and strategic positioning—and it allows the company to concentrate even more on its principal activities in Argentina: the development of the telecommunications sector and the most advanced technologies in connectivity to drive the digital society of the future. Thus, Telefónica ratifies its strong commitment to a connected Argentina, which plays a leading role in the digital revolution.”

Telefe reaches 95 percent of Argentine homes and has a 33 percent viewing share year-to-date. It produces more than 3,000 hours of Spanish-language video content every year. With the Viacom acquisition, Telefe falls under the remit of Pierluigi Gazzolo, the president of VIMN Americas. The deal encompasses the free-to-air networks, eight wholly owned channels in the interior of the country, the pay-TV service Telefe Internacional, digital assets such as Mi Telefe, Telefe Noticias and UPlay, 12 production studios and a library of more than 33,000 hours of content.