American telecom giant AT&T has reached an agreement to sell its Mexico division to Grupo Televisa and Fintech Holdings for USD 2 billion in cash at closing, subject to certain adjustments, plus additional contractual and contingent benefits.
“AT&T has made meaningful progress advancing its investment-led strategy in the US, where customers increasingly choose AT&T for quick, reliable internet and wireless service. By continuing to prioritize its US fiber and wireless networks, AT&T is engineering the foundation for advanced connectivity that consumers, businesses, and communities need for an AI-enabled future,” the business said while making the announcement.
Since entering Mexico, AT&T’s operating expertise has enabled the business to grow into one of the country’s leading wireless providers.
“AT&T believes that Grupo Televisa and Fintech Holdings are well positioned to lead AT&T Mexico through its next phase of growth. Grupo Televisa has a strong operating presence in Mexico with its fixed-line broadband business, and Fintech Holdings brings fresh capital, local knowledge, and operational expertise in the Mexican wireless sector,” it added further.
The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions, including any necessary regulatory approvals in Mexico.
Until close, AT&T expects to report AT&T Mexico as held-for-sale in continuing operations, which will be reflected in the company’s third-quarter 2026 10-Q filing with the SEC.
Shares in Televisa rose on Wednesday after the announcement, as the acquisition of AT&T’s Mexican unit will help the venture set up a showdown with telecoms giant America Movil.
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%.
While Televisa looks to become a challenger of America Movil, controlled by the family of Mexican billionaire Carlos Slim, a section of the analysts also cautioned that integrating the new business and competing in the Latin American country’s costly, fiercely contested telecom sector could limit the deal’s benefits.
“Televisa could become a stronger rival, with more growth opportunities, by selling service bundles and earning more from its existing customers,” analysts at UBS said in their note.
“We believe the transaction could be positive for the Mexican telecom industry. Consolidation usually leads to a greater focus on profitability, returns, and cash generation,” they added further.
As per the Santander analysts, while the valuation represents a significant discount to comparable telecom companies in Latin America, it also carries some execution risks.
“Value will be created through turning around AT&T Mexico’s operations, which have historically struggled (low margins) and eventually build out a convergent fixed-mobile offering … which could also prove challenging,” their market note said.
“AT&T Mexico still requires network modernization and investment, particularly in 5G, and the deal’s success will depend on the management’s ability to improve the network while generating cash,” remarked UBS, while flagging execution as a challenge ahead for the new group.