AT&T is reportedly close to finalizing a multi-billion-dollar transaction to divest its Mexican operations, marking a potential exit from the country after nearly a decade of presence. According to market sources, Grupo Televisa, through its telecommunications subsidiary Izzi, is in the final stages of negotiations to acquire AT&T México. (El Heraldo Mexico)
The transaction would represent a renewed strategic push by Grupo Televisa to re-enter the mobile telecommunications market, following its earlier foray through its former alliance with Iusacell. Izzi, led by Chief Executive Officer Francisco Valim, is said to be the frontrunner in the sale process.
AT&T’s decision to sell its Mexican business reportedly follows a strategic review by its board of directors, which concluded that the operation no longer aligns with the company’s long-term priorities. Since commencing operations in November 2014, AT&T México has struggled to generate positive cash flow and has been unable to compete effectively with market leader Telcel, part of América Móvil, controlled by Carlos Slim and headed by Daniel Hajj.
The sale process is being managed by Deutsche Bank, led by Chief Executive Officer Christian Sewing. Final bidders are reported to include Izzi and U.S.-based private equity firm Cerberus Capital Management, chaired by Steve Feinberg. However, market observers suggest that Izzi holds a competitive advantage, given Cerberus’s lack of operational presence in Mexico and the limited political and regulatory influence that may be required to navigate forthcoming changes in the telecommunications landscape.
The value of AT&T México—currently led by Mónica Aspe—is estimated at between USD 3 billion and USD 4 billion. Grupo Televisa is expected to finance the acquisition largely through its available cash reserves, deploying most of the liquidity currently held on its balance sheet to support the transaction.
If completed, the acquisition would significantly reshape Mexico’s telecommunications market and position Izzi as a stronger challenger in the mobile segment. The deal would also leave Grupo Televisa with an estimated leverage ratio of approximately four times EBITDA, reflecting the scale of the investment despite the use of existing cash resources.