Time Warner, Viacom Reported to Be Bidding for Argentine TV Broadcaster Telefe

By Shalini Ramachandran and Keach Hagey 

Time Warner Inc. and Viacom Inc. are among bidders circling Telefónica SA's Argentine television broadcaster Telefe for a potential acquisition, people familiar with the discussions said. The deal could allow one of the U.S. media companies to gain a greater presence in Latin America.

A deal could be worth as much as $400 million, some of the people said. Concrete offers are expected within the next several days, and a final decision will be made by Telefónica in October, one of the people said.

The deal process has gone on for months, according to reports from local press, such as Argentine newspaper Diario BAE. Time Warner's Turner unit has been viewed as the front-runner, according to those reports. Another company, media conglomerate Grupo Cisneros, also is in the mix of bidders, one of the people said.

For Time Warner, acquiring a Latin American broadcaster could help beef up the company's bouquet of channels in the region. The media giant already operates a number of channels in Latin America, including CNN International, Cartoon Network and TNT. HBO also has an established division in the region.

It is an awkward time for Viacom to be considering parting with cash. The media company is dealing with a heavy debt load and recently halved its dividend to help shore up its balance sheet. The company's cable networks unit and Paramount Pictures studio have struggled.

Still, Viacom executives believe that an acquisition of Telefe could be financially beneficial because of the broadcaster's cash flows, according to people familiar with the matter.

Meanwhile, Viacom is adjusting to a new board and management changes that were the result of a power struggle with controlling shareholder National Amusements Inc.

National Amusements is preparing to send a letter to the boards of Viacom and CBS Corp. to ask them to explore a merger, people familiar with the situation say.

Write to Shalini Ramachandran at [e-mail] and Keach Hagey at [e-mail]

(END) Dow Jones Newswires

September 28, 2016 17:48 ET (21:48 GMT)

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