Univision acquires Grupo Televisa assets for $ 4.8 billion and the two companies create a global media entity in Spanish – Deadline

Univision, which has been under new ownership since the end of 2020, has partnered with stakeholder Grupo Televisa to create a new global Spanish-language media giant.

Under the terms of the global deal revealed tonight, Univision will pay $ 4.8 billion for the assets of Televisa, a Mexican production powerhouse that was already a minority owner of Univision. The two companies will then create Televisa-Univision, which they say will be the biggest player in Spanish-speaking media. Grupo Televisa will be the main player in the new company with 45%.

Additional investments in the new entity come from the SoftBank Latin America Fund, Google and the Raine Group.

Although it has faced stiffer competition in recent years from rival Telemundo, Univision has long been the leader in American Hispanic media. Televisa is the No. 1 established in Mexico, the most populous Spanish-speaking market in the world. Televisa produced 86,000 hours of programming in 2020 in all genres and categories.

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Univision, now headed by former Viacom CFO Wade Davis after staging a takeover last year at a fraction of a previous privatization of the company, has great stability in US assets. The portfolio includes the Univision and UniMás broadcast networks, nine Spanish-language cable networks, 61 TV channels and 58 radio stations in major US Hispanic markets and Puerto Rico. It has recently focused on digital and streaming, and recently launched the free and ad-supported service PrendeTV.

Davis will lead the merged company, Alfonso de Angoitia will be executive chairman of the board of Televisa-Univision. Lower debt and better margins will result from the deal, the companies said, allowing the company to invest in the planned launch of a global streaming service in early 2022.

By announcing the agreement, the companies highlighted the opportunity for the Spanish market to rise globally. Only around 10% of the 600 million people in the market use an OTT service, they noted, while around 70% of English-speaking households have at least one streaming service.

“This strategic combination generates significant value for the shareholders of both companies and will allow us to more effectively reach all Spanish speaking audiences with a greater part of our programming,” said Emilio Azcárraga, executive chairman of the board of Televisa. . “Together, Televisa-Univision can more aggressively pursue innovation and growth through digital platforms as the industry continues to evolve.”

Davis added that the new company will be “uniquely positioned to seize the significant market opportunity for Spanish speakers around the world.”

He added: “The makeup of our new investor group reflects confidence in our strategy, the progress of our digital transformation and the scale of the opportunity that lies ahead.”

Televisa will retain ownership of izzi Telecom, Sky and other companies, as well as major real estate associated with production facilities, broadcast licenses and transmission infrastructure in Mexico.

As part of the transaction, Univision will pay $ 3 billion in cash, $ 750 million in Univision common stock and $ 750 million in Series B preferred stock, with an annual dividend of 5.5%. The balance is derived from what the ad called “other business considerations”.

The production of news content for Mexico will be outsourced to a company owned by the Azcárraga family to ensure that the news content remains in Mexican hands and is produced in Mexico, according to the announcement. Televisa-Univision will retain all assets, IP and library related to Televisa’s news division.

After the close, content production and operations in Mexico will continue to be led by Emilio Azcárraga, Chairman of the Board of Televisa, and Bernardo Gómez and Alfonso de Angoitia, Co-CEO of Televisa, during a transition period. .

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