IFT Allows Warner Bros Discovery to Acquire Subsidiary in Mexico

Plenary session Federal Institute of Communications (IFT), in its capacity as the body responsible for economic competition, has decided to authorize the acquisition of Warner Bros. Discovery (WBD) of Warner Media’s Mexican subsidiaries, as well as direct distribution to HBO Max consumers in Mexico (Operation Mexico).

IFT explained that originally proposed on September 24, 2021, the concentration of Discovery Inc. from AT&T’s Warner Media Business consisted of a purchase of foreign and Mexican subsidiaries, as well as a diluted acquisition by AT&T’s shareholders. shares representing the share capital of Discovery and the change opening value for WBD.

However, in the event of a conflict of jurisdiction between IFT and Federal Economic Competition Commission (Cofece) in Mexico, the merger notification process was suspended until last April, when the Second Specialized Collegial Court notified IFT that it was the economic competition authority deciding the acquisition.

WBD has voluntarily offered to remove any risks to competition in this market. Photo: Special

Thus, six months after the initial application Opening D AT&T reported to IFT that on April 8, 2022, they closed the acquisition of Warner Media internationally (a cross-border operation), except for the acquisition of Mexican subsidiaries, which would have been acquired separately if deemed so by authorities.

Mexican operation

Thus, IFT proceeded to analyze and make a decision on Mexican operation because it was a declared transaction that was not carried out and in respect of which its consequences can be determined separately from the consequences of an international transaction.

And he identified that WBD’s Mexican business affects 4 markets for children’s content, although he pointed out that “the agents involved do not have large market shares, so the operation is not expected to pose risks to free competition and economic competition.”

Finally, WBD has voluntarily offered to eliminate any risk to the competition of this market.

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Source: Heraldo De Mexico

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