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Telecom Argentina to Merge with Cablevisión – Report

Tie-up between telco and pay-TV giant would be able to provide quad-play services to Argentinian subscribers.

Iain Morris

July 3, 2017

2 Min Read
Telecom Argentina to Merge with Cablevisión – Report

Telecom Argentina is said to have reached an agreement to merge with cable TV player Cablevisión following sector reforms allowing telecom operators to enter the pay-TV market.

The pending merger, reported over the weekend by Reuters, would unite one of Argentina's biggest providers of telecom services with the country's pay-TV giant and position the new-look player for a launch of "quad-play" offerings that bundle fixed, mobile, broadband and TV services in a single bill.

The deal, according to Reuters, has yet to secure regulatory approval but would see Telecom Argentina (NYSE: TEO) issue 1.184 billion shares and leave Cablevisión shareholders with about 55% of the combined company.

It comes after Argentinian President Mauricio Macri introduced legislation last year allowing telecom players to offer pay-TV services.

Analysts had long predicted a deal between Telecom Argentina and Cablevisión should regulation allow it. Without such a merger, the telco would have to make considerable investments in networks and content to mount an effective challenge in the pay-TV market.

Want to know more about pay-TV subscriber trends? Check out our dedicated video services content channel here on Light Reading.

Industry observers believe the deal between Telecom Argentina and Cablevisión could trigger more takeover activity in the market, potentially involving the local subsidiary of Spain's Telefónica, which has previously expressed interest in acquiring pay-TV assets in Latin America, according to Reuters.

Telecom Argentina was bought in March last year by investment group Fintech, which is also a minority shareholder in Cablevisión.

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

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About the Author(s)

Iain Morris

International Editor, Light Reading

Iain Morris joined Light Reading as News Editor at the start of 2015 -- and we mean, right at the start. His friends and family were still singing Auld Lang Syne as Iain started sourcing New Year's Eve UK mobile network congestion statistics. Prior to boosting Light Reading's UK-based editorial team numbers (he is based in London, south of the river), Iain was a successful freelance writer and editor who had been covering the telecoms sector for the past 15 years. His work has appeared in publications including The Economist (classy!) and The Observer, besides a variety of trade and business journals. He was previously the lead telecoms analyst for the Economist Intelligence Unit, and before that worked as a features editor at Telecommunications magazine. Iain started out in telecoms as an editor at consulting and market-research company Analysys (now Analysys Mason).

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