AT&T exits Mexico in $2B sale to focus on U.S. market
AT&T has agreed to sell AT&T Mexico to Grupo Televisa and Fintech Holdings for $2 billion, ending a decade of international expansion and allowing it to concentrate on its U.S. operations. Analysts at BNP Paribas estimate the Mexican unit will generate about $900 million in 2027 EBITDA and roughly $500 million in annual cash, making the sale multiple about 2.2 times. The deal trades recurring cash flow for a simpler investment story, with AT&T betting that investors will reward its sharper domestic focus.
AT&T's exit ends a Mexico push begun in 2015 through Iusacell and Nextel Mexico. The unit grew to nearly 25 million subscribers before the $2 billion sale to Grupo Televisa and Fintech Holdings. BNP Paribas estimates 2027 EBITDA near $900 million and annual cash of about $500 million, a roughly 2.2-times multiple.
The buyers offer local advantages: Televisa already operates broadband infrastructure, while Fintech Holdings supplies funding and local know-how. The disposal fits a wider telecom pattern of carriers pulling back from multi-market expansion to concentrate on home operations, where AT&T faces intensifying competition, including SpaceX's Starlink ambitions.
Mexican mobile users could see service priorities shift as Televisa and Fintech Holdings take over, though continuity may be likely. AT&T's sharper U.S. focus may channel more capital into domestic fiber and 5G, potentially improving coverage or competition. Employees, suppliers, and investors on both sides of the border may feel transitional effects. Broader market consolidation could reduce some competitive pressure, but outcomes depend on how the new owners invest and how rivals, including satellite providers, respond.