AT&T, which is currently battling it out with the U.S. Department of Justice over its proposed $85 billion purchase of Time Warner (TWX), initially planned to unload this Texas-based unit – that includes satellite and cable TV services – in order to pay down its debt which would soar after it seals the deal with Time Warner.
Vrio– that offers services to Colombia, Brazil, and Argentina — sees a huge potential in Latin America mostly due to the improved economic conditions as well as the regulatory environment. In fact, the company has had a strong financial performance but has a distance to travel to prove its mettle as a separate entity – especially in the current competitive market.
Founded in 1996, Vrio was acquired by AT&T in 2015 as part of its acquisition of DirectTV. Currently, AT&T stands as a sole shareholder of the company that is headed by Jeffery McElfresh. Vrio’s satellite pay-TV network offers services to about 7.9 million Americans. At the end of 2017, Vrio’s subscriber rate surged 9.3 %. Even after Vrio’s IPO, AT&T would retain its major voting control over the unit.
As of December 31, 2017, Vrio reported revenue growth of over 11% to $5.57 billion. The company had a total of $443 million in cash. DirectTV Latin America reported 10.9% growth in its revenue last year to $5.57 billion.