Paramount sold Argentinian free-to-air broadcast network Telefé to a holding company controlled by local businessman Gustavo Scaglione and Jose Luis Manzano.
The acquisition will include Telefé’s main headquarters in Buenos Aires and its three regional affiliates in Rosario, Santa Fé and Córdoba. The deal marks a significant shift in the Argentine media landscape, bringing Telefé under local ownership.
Financial details of the agreement were not disclosed, though local newspaper La Nacion reported that the purchase price was approximately $100 million, down from the $345 million Viacom paid for it in 2016 prior to its merger with CBS.
Telefé reaches 44 million households in Argentina, representing a reach of 95%.
It produces more than 3,500 hours of Spanish-language video content annually, including nine of the top 10 programs airing locally. It also manages a library of over 33,000 hours of content. Its pay TV channel, Telefé Internacional, is distributed globally to more than 8 million subscribers in more than 20 countries. It also distributes content through the digital app Mi Telefé.
“Telefé has long been a benchmark in Argentine television, and we are confident it will continue to grow and thrive under its new local management,” Kevin MacLellan, Paramount’s president of global content distribution and international media, said in a statement. “We express our sincere gratitude to the talented teams in Argentina who, through their dedication and creativity, have contributed to Telefé’s success over the years.”
“It is a true honor and privilege that a prestigious company like Paramount has entrusted me and the group I lead with the future of Telefé,” Scaglione added. “This channel represents excellence and commands a massive audience across Argentina.”
The move comes as Paramount’s new leadership is looking to exceed $2 billion in cost savings. In addition to launching a review of its international pay TV strategy, the company is considering real estate asset sales and will lay off thousands of employees.
“This sale reflects our ongoing commitment to evolving our global portfolio and focusing on areas with the greatest potential for long-term growth. In Latin America, that includes continuing to scale our direct-to-consumer offerings,” MacLellan said in a memo to staff obtained by TheWrap. “And in our English-language markets, we know that our free-to-air networks – like Channel 5 in the UK and Network 10 in Australia – are important to our success. These platforms not only deliver strong local performance, but also play a critical role in driving awareness, engagement, and growth across our entire ecosystem.”
Integra Capital S.A. served as the advisor for the holding company that acquired Telefé, and The Raine Group, Quantum Finanzas, and G5 Partners served as financial advisors to Paramount on this transaction.