Televisa buys remaining Cablecom shares
Mexico’s Grupo Televisa has spent $653.96 million on acquiring the remaining shares of Mexican cable firm Cablecom that is does not already own.
Televisa acquired 51% of Cablecom last year, and the completed acquisition forms part of the Mexican pay-TV giant’s strategy to consolidate its position in the county’s cable TV market.
Cablecom has operations in 16 states and the acquisition adds 1.2 million cable, internet and phone subscribers to Televisa’s existing 5.4 million total subscriber base.
Mexico’s Federal Telecommunications Institute (IFT) deemed Televisa a dominant player in the pay-TV market earlier this year, and the company is subject to a number of new rules in the recent reforms as the government aims to increase competition in Mexico.
America Móvil was also deemed dominant but according to the new legislation, if the company reduces its share in both the mobile and fixed-line markets in Mexico, it will be eligible to apply for a pay-TV licence in 18 months and finally compete with Televisa.
The IFT reportedly has 30 days to investigate Televisa’s market power in Mexico.