AT&T has agreed to sell the bulk of its Vrio satellite TV business in Latin America to Argentinian holding company Grupo Werthein. In a statement, the company confirmed that the sale includes 10.3 million subscribers across 11 countries in Latin America and the Caribbean, including those inherited from its acquisition of DirecTV in 2015. Vrio provides live and on-demand video services via DirecTV Latin America, Sky Brasil and its OTT platform DirecTV Go in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay. AT&T’s stake in Sky Mexico and Vrio’s broadband operations in Colombia are not included in the sale.
AT&T added that, ahead of the transaction, it classified Vrio as "held-for-sale" as of 30 June, resulting in a USD 4.6 billion impairment, including USD 2.1 billion in foreign currency adjustments. The companies expect the deal to close in early 2022, with "substantially all" employees who currently support Vrio’s operations transitioning to Grupo Werthein. The latter said it plans to maximise the Vrio brands in Latin America and increase their value proposition "by investing in technology and content aligned with the viewing habits of each one of the subscribers, including the next generation of consumers."
No further financial details were disclosed but an AT&T spokesman told the Wall Street Journal that the transaction carries an enterprise value of USD 500 million, payable over the next few years.
