Telefónica eyes AT&T's LATAM pay-TV business


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Juan Fernandez Gonzalez

| 18 January 2016




Spain's Telefónica is considering throwing $10BN at the pay-TV sector in a bid to buy AT&T's operations across Latin America, including DirecTV.



According to Reuters, the telco’s executives have expressed an interest in buying AT&T's pay-TV assets in the region, which grew considerably after its acquisition of DirecTV last year. These operations include satellite and cable television services in Brazil, Colombia, Venezuela, Argentina and several other countries.

However, the US company has yet to decide if it will explore a deal with Telefonica or another company. “Other parties are interested in AT&T's assets in specific countries, and the company may choose to run several sale processes,” said a Reuters' source.

Currently, AT&T has about 19 million pay-TV subscribers in Central and South America, making it the biggest player in the region. With profits having decreased, AT&T chief executive Randal Stephenson has stated the company is considering selling the Latin American business, but said there was no rush.

Telefónica is one of the largest wireless and mobile providers in the Latin American market, but doesn't hold a strong position within the pay-TV sector. However, the telco's pay-TV operations have seen growth in both Latin America, especially Peru, and Europe since it moved to become a video company.