Viacom acquires Televisión Federal S.A. (Telefe) in Argentina for USD345m

Viacom Inc. (Nasdaq: VIAB, VIA) and Telefónica S.A. have acquired Televisión Federal S.A. (Telefe), one of the main free-to-air channels in Argentina, by Viacom International Media Networks (VIMN), the companies said.

The transaction has been concluded for a total amount of USD345 million dollars in cash.

The transaction adds one of Argentina´s most popular television networks and biggest content producers to Viacom´s fast-growing portfolio of international TV networks and digital properties.

Under the terms of the agreement, Viacom will acquire all of Telefe´s brands and assets, including:

Telefe in Buenos Aires Capital and Gran Buenos Aires, one of the country´s leading free-to-air networks, initially launched as Tele Once in 1961. The network´s diverse range of programming includes Educando a Nina, Loco x Vos, Susana Giménez, Pesadilla en la Cocina and Telefe Noticias.

Eight wholly-owned channels in the interior of the country, including Canal Cinco in Rosario, Canal Siete in Neuquén, Teleocho in Córdoba, Canal Ocho in Mar del Plata, Canal Ocho in Tucumán, Canal Nueve in Bahía Blanca, Canal Once in Salta and Canal Trece in Santa Fe
Telefe Internacional, a pay TV channel seen throughout the Americas and distributed globally to ten million subscribers across 17 countries

Significant multiplatform presence through applications such as Mi Telefe (My Telefe) and Telefe Noticias (Telefe News), a multi-channel network called UPlay founded by Telefe and an e-commerce partnership with Mercado Libre
Twelve production studios which have a combined total of 12,000 m2 of production space

A library of over 33,000 hours of content currently distributed in more than 100 countries in 35 languages
The acquisition was financed from Viacom´s existing cash balances. The transaction is expected to be accretive to Viacom´s fiscal year 2017 earnings.

The transaction is subject to customary regulatory approvals.

UBS Investment Bank served as financial advisor to Viacom Inc., while M.& M. Bomchil and Shearman & Sterling served as its legal advisors. Citigroup served as financial advisor to Telefónica, while DLA Piper and A & F Allende Ferrante served as its legal advisors.

Viacom is home to premier global media brands that create compelling television programs, motion pictures, short-form content, apps, games, consumer products, social media experiences, and other entertainment content for audiences in more than 180 countries.

Telefónica is one of the largest telecommunications companies in the world by market capitalization and number of customers with a comprehensive offering and quality of connectivity that is delivered over world class fixed, mobile and broadband networks.

Telefe is a in the production, distribution and sale of content and multiplatform services in Argentina. It holds nine broadcast TV licenses and two channels; one national and one International with more than 10 million subscribers.