Viacom may be contemplating a reunification with CBS Corporation as it seeks a turnaround and must deal with a struggling Paramout Pictures, but that has not stopped the Redstones from going to South America and investing in the biggest TV player in the land of provoleta and empanadas.
In a deal valued at $345 million, Viacom is buying Televisión Federal S.A. (Telefe), one of the main free-to-air channels in Argentina.
Technically, Viacom International Media Networks (VIMN) is acquiring Telefe, which has a 33% of viewership year-to-date in Argentina, where it has been a dominant player for years and imports a Telefe Internaciónal channel to locales across the Americas, including the U.S.
By combining Telefe with Viacom’s popular pay TV networks, which include MTV, Nickelodeon, Comedy Central and Paramount Channel, the deal bolsters VIMN’s position in Argentina and Latin America.
Telefe will fall under the direction of Pierluigi Gazzolo, President of VIMN Americas.
The acquisition was financed from Viacom’s existing cash balances. The transaction is expected to be accretive to Viacom’s fiscal year 2017 earnings. The transaction is subject to customary regulatory approvals.
UBS Investment Bank served as financial advisor to Viacom Inc., while M.& M. Bomchil and Shearman & Sterling served as its legal advisors.
Citigroup served as financial advisor to Telefónica, while DLA Piper and A & F Allende Ferrante served as its legal advisors.