Wall Street Journal | February 18, 2011 | Jose De Cordoba
MEXICO CITY—Companies controlled by Mexican billionaire Carlos Slim have decided to stop advertising through the country’s biggest broadcaster, Grupo Televisa SAB.
The move by Mr. Slim, expected to cost Televisa some 4% of its advertising sales in 2011, is part of an escalating battle for the airwaves between two of Mexico’s largest and most powerful business groups.
Televisa is expected to announce the decision, and its impact on sales, during a conference call with analysts Friday morning.
Arturo Elias, a spokesman for Mr. Slim’s companies, said the withdrawal of advertising was due to the broadcaster’s hike in advertising rates. He said that if Televisa were to lower their rates again, Mr. Slim’s firms would consider going back in.
People familiar with the matter said the decision by Slim companies include industrial and retail conglomerate Grupo Carso SAB, fixed-line phone giant Telefonos de Mexico SAB, and Telcel, the country’s largest mobile operator and a unit of regional phone giant America Movil SAB.
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