As it continues to investigate the possibility of a merger with former corporate sister CBS, Viacom said Tuesday that it has agreed to purchase Argentine over-the-air broadcaster Television Federal S.A. (Telefe) from Spanish-language broadcast company Telefonica S.A. for $345 million in cash.
According to Viacom, Telefe reaches 95% of all households in Argentina, a country of 43 million, and has attracted about 33% share of viewership year-to-date in 2016. The network produces more than 3,000 hours of Spanish-language video content each year, including seven of the top 10 programs currently airing locally, and has a library of 33,000 hours of local content. By combining Telefe with Viacom’s popular pay TV networks—which include MTV, Nickelodeon, Comedy Central and Paramount Channel—Viacom said the deal further strengthens VIMN’s position in Argentina and Latin America.
Reuters first reported that Viacom was looking at the Argentine broadcaster earlier this month. Viacom also is in the middle of looking into a possible merger with CBS and hired advisers to work with an independent committee of its board to investigate the matter. CBS also hired advisers to evaluate a possible deal last month.