Telecom Argentina, Cablevision merge to create pay-TV giant
Details
Juan Fernandez Gonzalez
| 03 July 2017

Ahead of regulation changes which come into effect in January 2018, Telecom Argentina and Grupo Clarín’s Cablevisión have announced a merger that will shake up the Argentinean pay-TV market.

As Argentina’s largest telecom and pay-TV providers, the transaction will allow the combined company to become a leader in convergent solutions as well as strengthen its investment in technology infrastructure, both mobile and terrestrial fibre-to-the-home (FTTH).

The resultant telco will own around 30 million clients, over 50% of the fixed broadband market and 40% of pay-TV.

Once the process is complete, Cablevisión, which was established as an independent pay-TV provider last year, will be completely integrated into Telecom Argentina.

However, Cablevisión shareholders Cablevisión Holding SA and Fintech Media LLC will receive direct and indirect total participation in Telecom Argentina equivalent to 55% of the combined company's total outstanding capital, retaining a majority stake in the resultant company.

Through the move, Telecom Argentina will also finally gain access to a pay-TV operation, a long-pursued goal for Argentina’s leading telco.

Both companies have announced a preliminary plan to merge their respective corporate structures and operations “with the aim of creating a leading provider of convergent telecommunications services and to participate in the opening of the telecommunications sector that, according to Argentine regulations, is expected to occur beginning in January 2018.”

The preliminary agreement has already been approved by the boards of directors of the companies, and has now to be given the green light by the country’s competition and market authorities.

“We are proud to create the leading company in convergent solutions that will fulfil the digital life of people and facilitate the digital operations of enterprises and corporations. At the same time, this transaction will allow us to develop a business model that will accelerate the market transformation towards quadruple play,” said German Vidal, CEO of Telecom Argentina.