Viacom to land Telefe, reaps C5 profit

Viacom is poised to acquire Telefe for around US$400m after winning an auction for the Argentinian broadcaster, and has seen its UK network Channel 5 report record profits.

Bob Bakish

The US media giant, which was rumoured to be interested in Telefe for months, beat off competition from companies including Time Warner and Cisneros Group to land the Buenos Aires-based firm, according to Bloomberg.

Telefe, Argentina’s leading broadcaster, 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’s owner, European phone operator Telefonica, has been trying to offload the broadcaster to help it pay off debts. The sale remains subject to confirmation and regulatory approval.

The news came just before Viacom’s UK free-to-air network C5 reported record profits, which rose to £58.4m (US$72m) from less than £15m last year. Revenue jumped 19% to £383m.

C5 has been strengethening its links with Viacom since the firm bought the Big Brother broadcaster from Richard Desmond’s Northern & Shell Group for £450m.

Since then Viacom’s MTV and Nickelodeon channels have teamed up with C5 to coproduce shows such as reality series 10,000 BC, from ITV Studios-owned prodco The Garden and GroupM Entertainment. Meanwhile, Nick and C5’s kids brand Milkshake partnered on animated series Nella the Knight.

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

Viacom confirmed Bob Bakish, head of Viacom’s international networks business since 2011, as its acting president and CEO last week. He is taking over from Tom Dooley, who leaves the company this month.

Dooley was promoted to replace president and CEO Philippe Dauman in August, following the latter’s long-running legal stand-off with the Redstone family.

Dooley had responsibility for the media group’s assets, including MTV, Nickelodeon, Comedy Central, Paramount Pictures and Channel 5.

Bakish has also been appointed to the new role of president and CEO of Viacom Global Entertainment Group. This combines the international businesses with Viacom’s Music and Entertainment Group, comprising MTV, Comedy Central, VH1, Spike and Logo. TV Land and CMT will also join the newly formed group.

Viacom also said its kids and family arm will be re-established as the Nickelodeon Group, while BET Networks will continue as a separate entity.