Televisa & Univision Announce Merger
• Grupo Televisa, S.A.B. and Univision Holdings, Inc. (together with its wholly owned subsidiary, Univision Communications Inc.), announced a definitive transaction agreement in which Televisa’s content and media assets will be combined with Univision to create the largest Spanish-language media company in the world: Televisa-Univision. This newly combined entity brings together the two leading media businesses in the two largest Spanish-speaking markets in the world: Univision in the U.S., the largest Spanish-language media market by value, and Televisa in Mexico, the most populous Spanish-language market in the world.
Televisa will also contribute its four free-to-air channels, 27 pay-TV networks channels and stations, its Videocine movie studio and Blim TV subscription video on demand (SVOD) service; and the Televisa trademark. Univision’s market-leading assets in the U.S. include the Univision and UniMás broadcast networks, nine Spanish-language cable networks, 61 television stations and 58 radio stations in major U.S. Hispanic markets and Puerto Rico, and prominent digital assets, including its recently launched AVOD streaming service, PrendeTV.
This transaction was partially financed by a new $1 billion Series C preferred investment led by the SoftBank Latin America Fund with participation from Google, The Raine Group and ForgeLight.
“This strategic combination generates significant value for shareholders of both companies and will allow us to more efficiently reach all Spanish-language audiences with more of our programming,” said Emilio Azcárraga, Executive Chairman of the Televisa Board of Directors. “Together, Televisa-Univision can more aggressively pursue innovation and growth through digital platforms as the industry continues to evolve. Our new investors at the SoftBank Latin America Fund, Google and The Raine Group are just as excited about the opportunities presented by this combination.” Univision CEO Wade Davis commented, “This transformative combination brings together the leading network serving U.S. Spanish-language audiences with the leading media platform in Mexico powered by the most powerful Spanish-language content engine in the world. Televisa-Univision will emerge as the leading global Spanish-language multi-media company, uniquely positioned to capture the significant market opportunity for Spanish speakers worldwide.”
The deal is expected to close sometime this year, subject to customary closing conditions, including receipt of regulatory approvals in the United States and Mexico, and Televisa shareholder approval. The Board of Directors of both Televisa and Univision have already approved the combination.
