AT&T (T) agreed on Tuesday, October 13, to sell AT&T Mexico to a 50/50 consortium of Grupo Televisa (TV) and Fintech Holdings for $2 billion in cash, plus contractual and contingent benefits. The deal should close in the first quarter of 2027, pending regulatory approvals in Mexico.
The $2 billion cash consideration is less than half the combined headline values of AT&T’s entry deals: $2.5 billion for Iusacell and $1.875 billion for Nextel Mexico. Both acquisitions closed in 2015, with payments reduced by net debt and other adjustments.
Why AT&T Will Take Less for Mexico
The unit grew sales but never earned much. Revenue rose 59% from $2.75 billion in 2021 to $4.38 billion in 2025. Operating income only turned positive in 2024, and last year’s $145 million was a 3.3% margin.
Across those five years, the business ran a cumulative operating loss of about $790 million. The $2 billion cash consideration is roughly 14 times last year’s operating profit, and AT&T says the sale will sharpen its capital-allocation focus on U.S. fiber and 5G.
That’s the same goal behind the fiber joint venture AT&T signed with GIP and CPP Investments a week earlier.
The Street Won’t Rewrite Its AT&T Math Over This
Analysts were already cooling on AT&T before the sale. The mean target was $28.76 on October 13, about 26% above that day’s $22.85 close but down from $30.66 at the end of September 2025. Ratings now show 11 buys, 3 outperforms, 10 holds and 1 sell. A year earlier, there were 7 outperforms and only 6 holds.
Selling a business with $145 million in annual operating income makes AT&T simpler and concentrates its investment case further on U.S. connectivity. Holds have risen from 6 to 10, showing a more cautious ratings mix, though the ratings alone don’t establish why analysts became less bullish.
Want to see how AT&T’s segments, targets and ratings have shifted over time? Pull up the same data on TIKR for free and check the numbers yourself. Learn more here.
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