Mexican broadcaster and cable operator Grupo Televisa has announced an agreement to merge with US broadcaster Univision, a longtime partner, to create what it describes as the largest Spanish-language media company in the world. The deal to set up Televisa-Univision involves the US broadcaster paying USD 4.8 billion for Televisa’s content assets, with additional Series C preferred equity investment in the new entity coming from the SoftBank Latin America Fund, Google and The Raine Group. Televisa said it will be the largest shareholder in the new company, with a 45 percent equity stake.
In its statement, Televisa added that it will retain ownership of Izzi Telecom, Sky and other businesses, as well as the main real estate associated with the production facilities, the broadcasting licenses and transmission infrastructure in Mexico. The company 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.
The new company’s portfolio will also include the Univision and UniMas broadcast networks, nine Spanish-language cable networks, 61 TV stations and 58 radio stations in major US Hispanic markets and Puerto Rico, as well as the recently-launched free, ad-supported platform PrendeTV.
In that regard, Televisa said the combined entity intends to aggressively pursue the relatively nascent global Spanish-language streaming opportunity, citing data indicating that only about 10 percent of the 600 million people in that market currently use an OTT service.
Current Univision CEO Wade Davis will lead the combined company and Alfonso de Angoitia will serve as executive chairman of the Televisa-Univision board of directors. The transaction is expected to close in 2021, subject to customary closing conditions, including receipt of regulatory approvals in the US and Mexico, plus Televisa shareholder approval.
