On Tuesday, Viacom had bought Argentine broadcaster Television Federal SA (Telefe) from Spanish telecom carrier Telefonica for USD 345 million.

In 1993, Viacom launched MTV in Argentina, as well as company pay-TV networks such Comedy Central, Paramount, Nickelodeon, and VH1 in the country. Now, with Telefe's purchase, the American company is set to expand its strong presence among Argentine television viewers.

According to the New York Times, Viacom's purchase of Telefe is part of its plans to boost American media in Argentina and Latin America. Telefa reaches 95% of Argentina's household through a network of channels with 26.8 million subscribers.

Robert M. Bakish, the Acting President and Chief Executive Officer (CEO) of Viacom, said in a statement that Telefe is an outstanding broadcast and production business, and with its acquisition, it will boost Viacom's growth strategy in Argentina. Needless to say, Telefe's power to draw in Spanish-speaking audiences can greatly benefit Viacom. 

For almost 50 years, Viacom has been the first American firm to operate a free-to-air channel in Argentina. The whole idea of buying the nation's broadcast network from Telefonica came from Bakish himself, who's also the firm's former international networks chief prior to his appointment as CEO last month, as reported by Variety.

Most importantly among all the factors of acquisition is Telefe's production capacity, which includes 12 studios that produce more than 3,000 hours of Spanish-language content distributed to 100 countries and in 35 languages. Telefe also operates in eight regional channels throughout Argentina and offers streaming services as well.

The deal has been rumored for weeks prior to its confirmation; Time Warner once emerged as the front-runner. For a long time, Telefonica have been looking for a buyer interested in Telefe to pay down its debt. The deal is expected to add to Viacom's fiscal 2017 earnings.