Broadcast and media player Grupo Televisa created some new waves in the Mexican telecommunications market by acquiring cable TV operator Cablecom at the same time the government is trying to encourage more outside investment.
Televisa issued a short statement on the acquisition, announcing that "in relation to the transaction communicated to the market back in August 1, 2013, it has acquired, pursuant to the applicable regulations, directly and indirectly 100% of the equity interest of Grupo Cable TV, S.A. de C.V. ("Cablecom"), through the conversion of certain debt instruments previously subscribed and a payment of Ps.8,550 million (about $652 million)."
A Wall Street Journal article said the acquisition will add 1.2 million cable, Internet and phone subscribers to Televisa's 5.4 million subscriber universe. In addition to its cable holdings, Televisa controls about 70 percent of Mexico's broadcast market.
The move comes as the Mexican telecom space continues to deal with new state regulations designed break up monopolies controlling the country's telephone and media markets in hopes of bringing more competition to the market.
Carlos Slim's America Movil, facing the prospect of government intervention, in July sold off assets to "reduce its national market share in the Mexican telecommunications market under 50 percent in order to cease being a preponderant economic agent under the terms of the Constitution of the United Mexican States and its implementing legislation," an América Móvil press release stated.
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