The sale covers 10.3 million subscribers across 11 countries in the Western Hemisphere, including Argentina, Chile and Colombia, inherited from AT&T’s purchase of DirecTV. The wireless carrier said the sale will trigger a $4.6 billion accounting charge, which includes $2.1 billion tied to accumulated foreign currency translation adjustments. An AT&T spokesman said the transaction carries an enterprise value of $500 million, which will be paid over the next few years. The companies expect to close the deal in early 2022. Vrio has struggled with challenges unique to its home turf, including foreign-exchange rate swings and economic downturns in key markets including Brazil, where the unit holds a controlling stake in satellite-TV service Sky Brasil. The company previously wrote down its operations in Venezuela, where diplomatic tensions with the U.S. threatened the business.
Vrio’s infrastructure includes satellites and broadcast centers that carry 4K video formats. Vrio’s broadband operations, along with other investments, including Torneos y Competencias in Argentina and WIN Sports in Colombia, will transfer to Grupo Werthein at close. Werthein, a holding company with interests in telecommunications, financial markets, insurance, agribusiness and real estate, intends to maximize the Vrio brands in Latin America, 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.