Viacom Inc. on Tuesday said it had reached a deal to buy Argentina's Televisió n Federal SA from Telefó nica SA for $345 million in cash.

Televisió n Federal, known as Telefe, is one of the main free-to-air channels in Argentina, reaching 95% of all households in the country. It has attracted about 33% share of viewership year-to-date in 2016.

The deal, which combines Telefe with Viacom's popular pay TV networks?including MTV, Nickelodeon, Comedy Central and Paramount Channel?bolsters Viacom International Media Networks' position in Argentina and Latin America.

Viacom is exploring a potential merger with CBS Corp. A decade after splitting apart, Viacom and CBS were asked in September to consider merging by National Amusements, the Redstone family's holding company, which owns roughly 80% of the voting shares of both companies.

Viacom shares were down 0.9% midday to $38.53.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

November 15, 2016 13:05 ET (18:05 GMT)

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