AT&T has sold its complete Vrio Corp. business in Latin America to Argentina-based investment group, Grupo Werthhein. The announcement comes as AT&T — WarnerMedia's parent company–is prepared to release its quarterly earnings soon. The giant will spin off WarnerMedia to shareholders and merge it with Discovery in a deal likely to finish next year.
For the uninitiated, Vrio offers on-demand video and live services through Sky Brasil, DirecTV Latin America and OTT service DirectTV GO in Barbados, Colombia, Peru, Trinidad Curacao, Brazil, Argentina, Chile, Tobago and Uruguay.
Although, AT&T has already made its first big move to minimize its entertainment holdings in late 2020, where in it agreed to sell a large portion of DirecTV to TPG and form a new standalone firm.
The infrastructure of Vrio contains satellites and broadcast centers that transmit 4K video formats. Vrio's broadband activities and other ventures such as Argentina's Torneos y Competencias and Colombia's WIN Sports will also be transferred to Grupo Werthein by AT&T at the end of the year.
Lori Lee, CEO of AT&T Latin America, commented that with this sale, they will be able to focus even more on investing in customer connectivity. He further added that the telco behemoth remains committed to Latin America through its wireless business in Mexico and services for multinational enterprises operating in the region.
Grupo Werthein, a holding company with interests in financial markets, telecommunications, & real estate, stated that it plans to maximize the Vrio brands in Latin America by investing in technology and aligning content with every subscriber's viewing habits.
Ahead of the deal, AT&T said it categorized Vrio as "held-for-sale" as of June 30, resulting in a $4.6 billion impairment, including $2.1 billion in foreign currency adjustments. The low valuation is based on the fair market value minus the cost of sale.