American Towers paying $9.4 billion for Telefónica assets
- Dan Primack, author of Axios Pro Rata
Illustration: Sarah Grillo/Axios
American Towers agreed to buy the European and Latin American mobile phone towers businesses of Spain's Telefónica for $9.41 billion in cash.
Why it matters: This marks the first major foray by a U.S. tower operator into Europe, where Cellnex reigns supreme, and will help Telefónica eat into its €37 billion leverage load.
Details: The deal is for over 30,000 masts that from Telefónica's Telxius unit, which is partially owned by KKR.
The bottom line: "Long-term income streams tied to inflation have turned towers into prized investment targets in a world of low returns. These networks are set to expand to accommodate next-generation 5G internet and eventually link up billions of smart devices." — Inti Landauro & Isla Binnie, Reuters