What are your thoughts on regulatory actions against Megacable this year? Seems like the new President might have a similar (or perhaps even more enthusiastic) regulatory leaning ?
I don't view this as a meaningful concern. Televisa faced a similar ruling and it was later struck down in the courts. The current ruling also does not even affect a majority of Megacable's footprint - it's limited to specific cities (I can't read the link you posted, but that is my understanding based on research earlier this year). Overall, I don't have a view on what the politicians will or won't do. I'm controlling that risk through position size.
"later struck down in the courts" is unfortunately where the problem lies. Mexico's current President is intent on completing an extensive judicial reform where all judges will be replaced to be appointed by gov't and then elected. Many Mexico watchers have deemed this negative for business/outside investors.
https://www.telecompaper.com/news/ift-imposes-dominance-measures-on-megacable-in-5-states--1497303
What are your thoughts on regulatory actions against Megacable this year? Seems like the new President might have a similar (or perhaps even more enthusiastic) regulatory leaning ?
I don't view this as a meaningful concern. Televisa faced a similar ruling and it was later struck down in the courts. The current ruling also does not even affect a majority of Megacable's footprint - it's limited to specific cities (I can't read the link you posted, but that is my understanding based on research earlier this year). Overall, I don't have a view on what the politicians will or won't do. I'm controlling that risk through position size.
"later struck down in the courts" is unfortunately where the problem lies. Mexico's current President is intent on completing an extensive judicial reform where all judges will be replaced to be appointed by gov't and then elected. Many Mexico watchers have deemed this negative for business/outside investors.
https://www.mayerbrown.com/en/insights/publications/2024/10/mexicos-controversial-judicial-reform-takes-effect-assessing-its-impact