Bloomberg reported that media giant Viacom, owner of cable networks including MTV and Comedy Central, won a bidding process to acquire Argentine broadcaster Telefe (Telefonica), according to people familiar with the matter. This way, the company outbid Turner and Cisneros Group.
The deal – valued at about USD400 million – could be announced as soon as this week, one of the people familiar with the matter said to Bloomberg. The transaction will still require regulatory approval from the National Agency of Communications (Enacom).
So far, Turner had been rumored to be the strongest candidate to acquire Telefe. However, the purchase of Time Warner by AT&T could have changed the landscape.
The deal would bolster Viacom’s international business since Telefe is the most-watched broadcaster in Argentina.Meanwhile, in the U.S market Viacom reported a drop in domestic advertising and affiliate revenues during Q316. In turn, Viacom is considering a re-merger agreement with its corporate sibling CBS Corp. from which it was split off a decade ago.