Key facts
- AT&T is selling its Mexico unit to Grupo Televisa SAB and Fintech Holdings for $2 billion.
- The acquisition is expected to more than double Televisa's share of Mexico's fixed and wireless subscribers to 19% from 8%.
- The deal is expected to close in the first quarter of 2027.
- Santander analysts noted execution risks and historically low margins for AT&T Mexico's operations.
AT&T Inc. has agreed to sell its Mexico operations to Grupo Televisa SAB and Fintech Holdings for $2 billion in cash, a move aimed at sharpening the company's focus on its U.S. business. The divestiture comes after AT&T struggled for a decade in the highly competitive Mexican market, where it faced significant competition from Telcel, a unit of Carlos Slim's America Movil SAB.
Televisa's shares rose about 5% on Wednesday following the announcement. The acquisition, if completed, would significantly expand Televisa’s telecom footprint, with Scotiabank analysts estimating its share of Mexico’s fixed and wireless subscribers would more than double to 19% from 8%. Analysts cautioned that integrating the new business and competing in Mexico’s costly telecom sector could limit the deal's benefits.
The transaction is expected to close in the first quarter of 2027. Santander analysts wrote that the valuation represents a significant discount to comparable telecom companies in Latin America, but the acquisition carries execution risks, including turning around AT&T Mexico’s historically low-margin operations and building out a convergent fixed-mobile offering.
Scotiabank said the deal could intensify competitive pressure because the relatively low purchase price could allow Televisa and Fintech to devote more capital to network investment. Santander analysts expected little immediate effect on America Movil, citing its scale and dominant market position.