AT&T said it agreed to sell its Vrio Corp. business unit to Group Werthein.
Vrio provides live and on-demand video services via DirecTV Latin America, Sky Brasil and DirecTV Go.
AT&T has been selling off its video companies--including WarnerMedia and DirecTV--in order to focus on its phone and broadband business,
AT&T spent big to build up its TV businesses and has been taking losses as it divests.
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The company did not disclose how much it was getting in the Vrio sale, but said the transaction will result in a $4.6 billion impairment, including $2.1 billion related to foreign currency--in its second quarter earnings.
Second-quarter earnings will be announced Thursday.
“This transaction will further allow us to sharpen our focus on investing in connectivity for customers,” said Lori Lee, CEO AT&T Latin America. “We remain committed to Latin America through our wireless business in Mexico and services for multinational corporations operating in the region.”
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AT&T and Grupo Werthein are committed to a smooth transition and a seamless customer experience. Vrio subscribers will continue to have access to premium content and can expect the same services, channel lineup, content offerings and customer care experience.
“Our vision of the future is to maximize these leading entertainment brands in Latin America, maintaining their leadership and increasing their value proposition by investing in technology and content aligned with the viewing habits of each one of the subscribers, including the next generation of consumers,” said Dario Werthein, shareholder, Grupo Werthein.
