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Televisa, TV Azteca shares jump after Mexico home-schooling deal

Credit: REUTERS/EDGARD GARRIDO

Shares in Grupo Televisa and TV Azteca surged on Tuesday after the Mexican companies inked a deal to broadcast home-schooling classes during the next academic year while schools remain closed because of the coronavirus epidemic.

Adds budget for home-schooling program, analyst's comments, background

MEXICO CITY, Aug 4 (Reuters) - Shares in Grupo Televisa and TV Azteca surged on Tuesday after the Mexican companies inked a deal to broadcast home-schooling classes during the next academic year while schools remain closed because of the coronavirus epidemic.

Mexico's education ministry has set aside 450 million pesos ($19.78 million) for the distance learning program that 30 million students are expected to use, local press reported on Tuesday.

"We consider that this news is positive for the (Televisa)station, since it generates greater confidence between agreements related to private industry and the government," Monex analyst Brian Rodriguez said.

The agreement could generate synergies in the advertising business, Rodriguez added.

Televisa TLEVISACPO.MX shares rose 11.3% and TV Azteca AZTECACPO.MX shares were up 11.2%.

The decision to keep the nation's schools closed after the Aug. 24 start of the academic year reflects stubbornly high infection rates and deaths in Latin America's second-largest economy.

(Reporting by Anthony Esposito and Noe Torres Editing by Paul Simao)

((anthony.esposito@tr.com; +5255 5282 7140;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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