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Viacom buys Telefe for $345m

Telefe's show Un Año Para Recordar is being remade by NBC in the US

Telefe’s show Un Año Para Recordar is being remade by NBC in the US

Viacom has confirmed its acquisition of Telefe and will pay Spanish telco Telefónica US$345m for the Argentinian broadcaster and producer.

The deal dramatically grows Viacom’s footprint in Spanish-speaking Latin America and brings to an end months of speculation about Viacom’s interest in buying the Buenos Aires-based firm.

Reports emerged last week that the US media giant was close to beating off competition from companies including Time Warner and Cisneros Group to land Argentina’s leading broadcaster.

The company operates a bouquet of networks and also produces programming including telenovelas, recently selling one of its crime dramas to NBC in the US.

It has also been extending its international operations rapidly over the past two years, teaming up with Israeli broadcaster Keshet to develop new formats.

It appointed Tomás Yankelevich to the position of chief of international business and content last year and has established Telefe USA, as well as naming Guillermo Borensztein as international business manager, reporting to Yankelevich.

Telefe will fall under the direction of Pierluigi Gazzolo, president of VIMN Americas. Viacom’s portfolio in the region includes 12 branded pay TV networks, including Nickelodeon, Nick Jr, Comedy Central, Paramount Channel and VH1.

The deal includes Telefe Internacional, a pay TV channel available throughout the Americas, as well as 12 production studios and a library of more than 33,000 hours of content distributed in more than 100 countries in 35 languages.

Bob Bakish, acting president and CEO of Viacom, said: “Telefe is an outstanding broadcast and production business, and this acquisition will accelerate our growth strategy in Argentina, one of the most advanced and valuable media markets in Latin America.

“Working together with Telefe’s highly successful team, we can strengthen Telefe’s market-leading status in Argentina and expand its presence around the world using Viacom’s extensive global network, potentially reaching hundreds of millions of Spanish speakers across Latin and North America, as well as in other markets.”

The deal comes as Viacom, which has seen its share price struggle over the past 12 months, considers a merger with CBS following a tumultuous period for the US entertainment conglomerate. Both companies are controlled by the Redstone family.

Viacom confirmed Bakish, head of Viacom’s international networks business since 2011, as its acting president and CEO earlier this month, replacing Tom Dooley.

  

 

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