Thursday, July 27, 2017

Transformations in the Argentine communications market (second release)

Telecom-Cablevisión mega-merger opens questions about how to guarantee competition

In just eight days, from June 30 to July 7, three detonating actions in Southern Cone communications market were set out. And it is not ruled out that Grupo Clarín will continue to show off its firepower.

On June 30, the directors of Telecom and Cablevisión signed the merger agreement. Less than ten days later it was revealed that Grupo Clarín is in charge of Telecom. And by the commitment between the parties it can be interpreted that it undertakes all the power and even counts with black ball for that which comes from Fintech and which it dislikes. Cablevision is a sector player and has experience - in addition to its firepower - to manage the mega company. That is why it will be able to design the composition of the board, the business plans and to appoint those who run the business and administrative units of Telecom.

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