Televisa expects AT&T purchase to strengthen position, debt will increase

What happened

Grupo Televisa said its $2 billion purchase of AT&T's Mexican unit, a 50/50 joint venture with Fintech Holdings, should strengthen its competitive position but raise net debt. The deal awaits regulatory approval and is expected to close in the first quarter of 2027.

Confirmed

Global impact / market context

Buying AT&T Mexico adds millions of wireless, broadband and video subscribers, making Televisa a stronger second-place telecom player. But more borrowed money raises net debt to 1.9 times EBITDA, which means the business will carry more debt relative to its operating profit, leaving less room for error.

Analyst inference

Telecom deals need regulator approval, so the 2027 closing date carries risk of delay or conditions. Televisa puts up $400 million in equity, while a five-year non-recourse loan funds $1.2 billion; that loan is repaid only from the venture's own cash, not Televisa's other assets.

Analyst inference

What to watch

1. Regulatory approvals must be obtained before the deal can close, with the companies targeting the first quarter of 2027 as the completion date. Confirmed
2. Watch whether the partners complete the planned $400 million equity contribution each and secure the $1.2 billion five-year non-recourse loan on the stated terms. Proposed
3. Track Televisa's net debt to EBITDA, expected at 1.9 times after closing versus 1.6 times in the third quarter, to judge whether added borrowing weighs on the company. Analyst inference

Evidence

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