AT&T sells Mexican unit to Televisa and Fintech Holdings for $2 billion

AT&T Inc (NYSE:T) has agreed to sell its Mexican wireless operations to Grupo Televisa SAB (NYSE:TV) and Fintech Holdings Inc. in a deal valued at $2 billion in cash, marking the American telecom giant's exit from a market where it spent over a decade trying to challenge billionaire Carlos Slim's dominance. The transaction, which includes additional contractual and contingent benefits, will allow Dallas-based AT&T to sharpen its capital allocation and focus entirely on expanding its core fiber and 5G networks within the United States.

The buyer consortium will operate as a 50-50 joint venture between Mexican media giant Televisa and Fintech Holdings, the investment firm led by billionaire David Martinez. The acquisition positions Televisa as the first telecom provider in Mexico capable of offering a full suite of services, combining mobile connectivity with its existing fixed-line broadband, pay-TV, and landline phone offerings. Televisa's U.S.-traded ADRs rose 3.2% in after-hours trading following the announcement.

AT&T originally entered the country in 2014 by acquiring Iusacell and Nextel Mexico for a combined $4.4 billion, lured by sweeping regulatory reforms intended to curb monopolistic behavior in the domestic telecom market. Despite deploying more than $10 billion in capital to build out its infrastructure, AT&T struggled to gain significant market share against Slim's América Móvil SAB and consistently clashed with the market leader over regulatory and spectrum access.

The sale reflects a broader retreat from non-core international assets as the U.S. carrier shifts its long-term strategy toward domestic advanced connectivity and AI-enabled infrastructure. AT&T plans to classify the Mexican unit as held-for-sale in continuing operations starting in its third-quarter 2026 financial report, with the transaction expected to close in the first quarter of 2027 subject to regulatory approvals.

For Televisa, the transaction marks its second major deal with AT&T in recent years, following its acquisition of AT&T's stake in satellite television provider Sky Mexico last year. The addition of a scaled wireless network enables Televisa to better compete against Slim's dominant Telcel unit, particularly as Mexico's telecommunications landscape shifts following the dissolution of its independent regulatory body, the IFT, into government-run agencies.

Shares of AT&T were largely unchanged in extended trading following the announcement, as investors had largely anticipated a divestment following reports last year that the company was exploring a sale. The broader market sentiment surrounding the telecom operator remains cautious, with the stock coming under pressure recently amid growing concern over potential industry disruption from SpaceX's expanding satellite-to-cellular initiatives.