Bob Bakish, acting president and Chief Executive Officer of Viacom Inc.
Viacom Inc. and Telefónica S.A. announced the acquisition of Argentina’s Telefe by Viacom International Media Networks (VIMN). The transaction has been concluded for a total amount of US$345 million in cash.
The transaction adds one of Argentina’s most popular television networks and biggest content producers to Viacom’s fast-growing portfolio of international TV networks and digital properties.
Telefe reaches 95% of all households in Argentina and has attracted approximately 33% share of viewership year-to-date in 2016. The network produces more than 3,000 hours of Spanish-language video content each year, including seven of the top 10 programs currently airing locally, and has a library of 33,000 hours of local content. By combining Telefe with Viacom’s popular pay TV networks this deal further strengthens VIMN’s position in Argentina and Latin America.
With this transaction, Telefónica takes one step further in its asset portfolio management, based on value creation and strategic positioning.
Bob Bakish, acting president and Chief Executive Officer of Viacom Inc., said: “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. 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: “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.”
