Grupo Televisa (TV) and NII Holdings (NIHD) Team Up
February 15, 2010 6:52 PM
Mexican media company Grupo Televisa SA (NYSE: TV) announced on Monday that the company may expand its business partnerships with NII Holdings, Inc. (Nasdaq: NIHD) internationally.
Grupo Televisa SA is the largest producer of Spanish language content in the world, as well as Mexico's number one television network, while NII Holdings, Inc. is the country's number four mobile phone operator.
The two companies plan to buy wireless spectrum in a government auction this year. If they acquire the desired amount of spectrum, Grupo Televisa SA plans to buy a 30% stake in NII Holdings' Nextel Mexico unit for $1.44 billion.
The investment would see Grupo Televisa SA adding wireless phone and data services to the list of many services it already provides its customers and increase competition with Telcel, the Mexican division of Latin America's largest mobile phone operator, America Movil S.A.B. de C.V. (NYSE: AMX).
If the deal is successful in Mexico, Grupo Televisa SA and NII Holdings, Inc. may try to move into other Latin American markets together.
