By Elinor Comlay
MEXICO CITY Jan 21 America Movil, the
telecom giant controlled by Mexican tycoon Carlos Slim,
announced a deal that will boost his access to Mexico's
advertising market even as local regulators block Slim from
offering pay television services.
Slim's America Movil generates hefty advertising revenue
from its dominant TV business outside of Mexico but it has been
denied access to the local broadcast market because of
The deal with Mexican entertainment company CIE will give
Slim an advertising unit valued at 1,668 million Mexican pesos
($131.65 million), CIE said. Neither company disclosed the terms
of the deal.
The acquisition hands the telecom giant advertising slots on
screens in cinemas and convenience stores, space in airports and
on pedestrian bridges and advertising rights with sports teams
and stadiums in Mexico.
Sports fan Slim made his first foray into soccer ownership
last year when America Movil acquired a 30 percent stake in two
soccer clubs in Mexico's first division.
The deal with CIE is slated for completion in the second
quarter, subject to regulatory approvals.
CIE, which runs concerts, sports events and trade shows
among other things, said it will use proceeds from the sale for
working capital and to pay down debt.
America Movil shares were down slightly at 15.55 pesos in
local market trading while CIE shares were unchanged from
Friday's close at 8.55 pesos.
Mexico's new president Enrique Pena Nieto has pledged to
increase competition in the telecommunications sector where Slim
dominates fixed and mobile phone lines and broadcasters Televisa
and TV Azteca have a tight hold on
the television market.