AT&T says it has no need to divest Sky Mexico stake

Tuesday 29 August 2017 | 15:39 CET | News

AT&T has denied reports that it needs to dispose of its 41 percent stake in Sky Mexico to meet the conditions imposed by telecom regulator IFT on its planned merger with Time Warner. AT&T Mexico informed local daily El Universal that the IFT’s remedies don’t require it to structurally separate or divest its Sky subsidiary or Time Warner’s HBO LatAm activities for the merger to proceed. Although the IFT expressed concern that AT&T may coordinate its activities with the Televisa broadcasting group, the company specified that it “preserved the right to appoint directors to the board of Sky Mexico as long as care is taken to ensure they aren’t involved in Time Warner operations regarding video programming with pay-TV operators in Mexico”.

The IFT also requested the separation of AT&T/Time Warner-owned HBO LAG from the merged entity’s pay-TV channel sourcing operations. Brazilian regulators have likewise expressed concern about potential competitive risks arising from the merger in view of AT&T’s ownership of pay-TV provider Sky Brasil.

AT&T said the two companies still expect the USD 85.4 billion deal to close by the end of the year.

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