Univision and Televisa Set Merger Deal to Create Spanish-Language Content Powerhouse

Univision and Televisa have come to terms on a merger agreement, a long-awaited deal that will create a Spanish-language TV giant with broad reach in Mexico and the U.S.

The deal calls for Televisa to contribute its media, content and production assets and a handful of networks to a new entity to be known as Televisa-Univision. Televisa’s assets are valued at $4.8 billion. The new company will be led by Univision CEO Wade Davis, who headed the investor group that acquired Univision in early 2020.

“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,” said Davis. “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.”

Televisa will be the largest shareholder in Televisa-Univision with a 45% stake. Univision will pay Televisa $3 billion in cash, another $750 million in Univision shares and $750 million in preferred Univision shares that promise an annual dividend of 5.5%. The deal will be financed by a $1 billion equity investment from SoftBank Latin American Fund, with participation from Google and Raine Group and $2.1 billion in debt commitments arranged by J.P. Morgan. The deal is expected to close later this year.

Alfonso de Angoitia, at present Televisa co-CEO, will serve as executive chairman of the Televisa-Univision board. Marcelo Claure, CEO of SoftBank International, will become vice chairman.

“We have been deeply involved with Univision for more than two decades, and we have never enjoyed a better relationship with our partners,” said de Angoita and Televisa co-CEO Bernardo Gómez. “We are creating a company which is a leader across multi-media categories, unified over the largest territories and with the scale and focus to deliver the most compelling content experience to Spanish-language consumers around the world. We are confident that this strategic transaction will maximize the potential of our Content segment, while allowing us to strengthen our balance sheet and focus on growth opportunities at our Telecom business.”

Outside of the Televisa-Univision umbrella, Televisa will retain ownership of izzi Telecom, Sky and other businesses and the real estate associated with the production facilities, the broadcasting licenses and transmission infrastructure in Mexico.

More to come

Click here to sign up for Variety’s new Media Earnings newsletter.

optional screen reader

Read More About:

Source: Read Full Article