Grupo Televisa, Mexico's largest media and telecom company, has agreed to acquire AT&T's wireless business in Mexico for $2 billion. The deal, structured through a 50-50 joint venture with private investment firm Fintech Holdings, is expected to close in the first quarter of 2027, pending regulatory approval.
The acquisition would bring roughly 24 million wireless subscribers to the combined entity, along with 5.7 million broadband customers and 6.3 million video subscribers. Televisa says the combined business would generate about $8 billion in annual revenue and capture approximately 23% of Mexico's telecom market.
How the deal is financed
Each partner—Televisa and Fintech—will contribute $400 million in equity, while the venture will take on a $1.2 billion, five-year non-recourse loan. Non-recourse financing means lenders can only claim against the venture's own cash flow and pledged assets, not against Televisa's broader balance sheet. This structure limits direct legal exposure for Televisa, but it doesn't eliminate financial pressure.
Televisa's net debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to rise to 1.9 times from 1.6 times. While that's a modest increase, the five-year maturity on the $1.2 billion loan creates a clear refinancing deadline. Investors will be watching whether the venture can generate steady cash flow to service that debt and refinance it when it comes due.
Why Televisa is making this bet
Televisa has been here before. The company previously operated a wireless business but exited the market after struggling against deep-pocketed competitors. Now, with AT&T's Mexico operations on the block, Televisa is making a second attempt, betting that scale—24 million subscribers—will give it the leverage to compete more effectively.
The Mexican telecom market is dominated by América Móvil, which controls a large share of wireless and broadband. AT&T's exit reflects the difficulty of challenging that dominance. Televisa's move consolidates the market further, potentially creating a stronger number-two player.
For context, Televisa recently returned to profitability on lower taxes, as revenue slipped, according to its latest earnings report. That financial backdrop makes this acquisition a strategic pivot toward growth, but it also adds complexity to an already competitive sector.
What it means for investors
The headline number is Televisa's higher leverage, but the bigger question sits inside the joint venture's financing. Because most of the purchase price is covered by a five-year, $1.2 billion non-recourse loan, the stress point is less “can Televisa repay this debt tomorrow?” and more “can the Mexico venture service the borrowing and refinance it when it matures?”
If market conditions tighten or results disappoint, lenders' first claim is on the venture, not Televisa. But shareholders could still feel the impact through weaker dividends from the venture or a hit to Televisa's equity value in the partnership, even without a legal obligation to step in.
Televisa's leverage ratio of 1.9 times is not alarming by itself, but it does reduce financial flexibility. The company will need to generate consistent cash flow from the new unit to avoid strain. Investors should watch how the venture performs in the coming quarters, especially as it integrates AT&T's operations and faces competition from América Móvil and other players.
The deal also comes amid broader economic conditions in Mexico. The central bank, Banxico, has kept its key interest rate at 6.50% into 2027, according to recent data, which could affect borrowing costs and consumer spending in the telecom sector. A stable rate environment may help the venture's financing plans, but any future hikes could tighten conditions.
Looking ahead
Regulatory approval is the next hurdle. Mexican antitrust authorities will likely scrutinize the deal's impact on competition, given that it consolidates a significant portion of the market. If approved, the venture will need to execute a smooth integration and prove it can hold its ground.
For everyday investors, this deal is a reminder that large acquisitions often come with hidden risks—not just in the headline price, but in the structure of the financing and the ability to refinance down the road. Televisa's bet on AT&T Mexico could pay off if the venture gains traction, but it also carries the risk of tying up capital in a market where success is far from guaranteed.
