Mexican billionaire Carlos Slim's America Movil, one of the world's biggest cell phone companies, plans to buy digital media company DLA Inc from Claxson Interactive Group.
The transaction suggests a more aggressive move from America Movil into video-on-demand and streaming services in Latin America.
No financial terms of the agreement were available. The deal is pending approval from authorities but is expected to close in the last quarter of 2011. America Movil could not immediately elaborate on the brief statement.
According to DLA's website, the company distributes movies, and television series from top U.S. entertainment houses like Walt Disney Co as well as music to televisions to smartphones alike.
Claxson and DLA are owned by the Cisneros Group of Companies, pioneers in the television market in South America.
The move follows recent statements from America Movil's Chief Executive Daniel Hajj to Reuters where he expected the company to expand its online video services in the region, adding Peru and Argentina to its existing offering in Colombia and Brazil.
With the DLA deal, America Movil would join a growing number of companies trying to lure in viewers with more attractive programming with a pay-as-you-go format.
In the region, Netflix recently launched its online video rental in more than 40 countries.
Cuevana, a free service, is also very popular in the region. Last month, Maxcom Telecomunicaciones launched its live television and video rental service in Mexico.
Shares in America Movil in Mexico fell 1.08 percent to 15.63 pesos while its New York-traded shares lost 1.76 percent to $23.44.