Televisa Eyes Satmex
FOR SALE: Global communications satellite business. Only $11 billion in debt. Good cash flow. Nice office in Bermuda; half-empty building in Washington. Heavy regulatory environment. Price: $6 billion.
Yet Intelsat isn’t the only satcom firm in the midst of (possibly) changing hands. Asiasat yesterday asked to have their stock trading suspended due to a pending announcement, and now come reports that Satmex, too, may be in the sites of a takeover entity.
MEXICO CITY — Mexican conglom Televisa is hooking up with the Chinese. VP of broadcasting Jose Baston signed an agreement to distrib state broadcaster CCTV’s international feed in Mexico on Monday. Televisa execs will travel to China in the coming weeks to explore sales of telenovelas and formats to that country…
Net also is considering bids for Endemol and Mexican satellite firm Satmex as possible destinations for its bulging cash reserves.
With Satmex in its fold, Televisa could cut its own international distribution costs as well adding revenue from Satmex’s three birds that cover the American continents. Global sat firms such as PamAmSat also are expected to go after Satmex.
Business News America has greater detail on Televisa’s thinking behind a Satmex buyout:
Televisa is analyzing what sorts of operational synergies exist between its own operations and Satmex’s coverage, according to de Angoitia….
However, Alberto Moreno, an analyst with corporate ratings firm Fitch Ratings México, downplayed the news saying that it is just one of many investment options that Televisa is weighing up and that it is too early to tell whether the company is a serious contender.
If the company is indeed seriously interested, an official announcement should be made in the short term, Moreno told BNamericas.
Despite the uncertainty, Moreno said that Televisa is looking for new investment opportunities to grow their business particularly to address the US Hispanic market.
Satmex has decent coverage of the Americas with only three satellites. Although Televisa’s recent sale of its stake in Univision was big news, it’s clear from the Satmex reports that Televisa’s interest in the growing U.S. Hispanic market is far from over.