He’s a Rosario, Argentina-born businessman who in the last decade has risen to become one of the most influential members of the nation’s media sector. Now, he’s acquired one of the country’s biggest television networks. The seller? Paramount Skydance.
The Argentine media holding company led by Gustavo Scaglione has agreed to purchase all of Paramount’s shares in Telefe, formally known as Televisión Federal SA.
Telefe is deeply rooted in Argentina’s culture, and debuted in July 1961 as Teleonce. The launch didn’t come easy, and U.S. dollars were infused into the operation thanks to an investment from ABC. In October 1970, Hector Ricardo Garcia would assume control of the operation, reinventing it as a news-focused operation to much success.
However, by October 1973 leadership changes in Argentina led to government intervention in the nation’s media. The 1980s saw continued turbulence. In March 1990 a new era began with privatization of the media returning; Telefe was born, and would be acquired in 1999 by Telefónica of Spain. Ratings were strong through 2010, when a rival surpassed Telefe. This contributed to the sale of Telefe in 2016 to Viacom for $345 million.
Viacom today is within Paramount Skydance. With Skydance Media’s merger with Paramount Global, Telefe was expected to be on the chopping block, as it was a non-essential asset for the new leadership under David Ellison.
Enter Scaglione, whose Grupo Televisión Litoral is rumored to have paid approximately $95 million for Telefe. This represents a severe devaluation of the Argentine Peso against the U.S. dollar, in addition to other business factors.
“The acquisition of Telefe, a brand deeply rooted in Argentina’s cultural identity, marks the beginning of a new era focused on growth and integration between both organizations, with the goal of strengthening production and maximizing the competitiveness of the new multiplatform ecosystem we are creating,” Scaglione said.
Telefe CEO Darío Turovelzky will remain in his role under new ownership. He said Scaglione’s arrival “provides us with a solid platform to scale our business. At Telefe, we are committed to continuing to lead and creating content that inspires and connects with audiences. True to our DNA, in this new phase we will continue to challenge the industry’s boundaries to strengthen our ecosystem and consolidate an innovative management model that drives the development and growth of all the group’s brands.”
The acquiring company, with the participation of José Luis Manzano of Integra Capital SA, acted as structuring and financial advisor in the transaction.
Scaglione also owns La Capital Multimedios, and he’s in control of various radio and television stations and newspapers across different regions of Argentina.
At present, the current exchange rate for the U.S. Dollar and Argentine Peso is unprecedented, with four quarters exchangeable for 1,480 Pesos. In October 2012, a $1 for 4.25 Pesos exchange was seen as favorable.
