Televisa, Univision merges | Hollywood Reporter

4:01 PM PDT 4/13/2021


Rick Porter

The two companies unveil a $ 4.8 billion deal to combine media, production and content assets.

Two of the largest Spanish-language media companies in the world are planning to merge.

Mexican Televisa and Univision will combine media, production and content into a new company called Televisa-Univision, the two announced on Tuesday. Univision will pay approximately $ 4.8 billion for Televisa’s content assets.

Univision CEO Wade Davis will hold the same title at the combined company, with Televisa co-CEO Alfonso de Angoitia as executive chairman of the board. Televisa will have the largest stake in the new company, with equity capital of 45 percent.

The merger will be funded in part by $ 1 billion in new preferred equity investments from Series C led by SoftBank’s Latin American Fund, along with current Univision investor ForgeLight LLC, Google and The Raine Group; and $ 2.1 billion in debt obligations arranged by JP Morgan.

The merger would create the world’s largest Spanish-language media company with offices in the two largest Spanish-speaking markets: Mexico and the United States. Televisa is a production powerhouse that will produce some 86,000 hours of content by 2020, and both companies have large packages of sports rights.

“This strategic combination will generate significant value for shareholders of both companies and will allow us to more efficiently reach all Spanish-speaking audiences with more of our programming,” said Emilio Azcárraga, executive chairman of Televisa’s 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 equally excited about the opportunities this combination presents. “

Davis of Univision added: “This transformative combination brings together the leading network for the US Hispanic audience with the leading media platform in Mexico, powered by the world’s most powerful Spanish-language content engine. Televisa-Univision will emerge as the leading global Spanish – language multimedia company uniquely positioned to capture significant market opportunities for Spanish speakers worldwide. ”

Grupo Televisa’s assets in Mexico include four wireless channels, 27 pay-TV networks, film studio Videocine and the Blim TV SVOD service, as well as a telecom company. Univision Holdings Inc. has the Univision and UniMas broadcast networks, 61 local TV stations and 58 radio stations, along with digital assets, including the recently launched AVOD platform PrendeTV.

“We have been deeply involved with Univision for over two decades and we have never had a better relationship with our partners,” said Televisa co-CEOs Bernardo Gómez and the Angoitia. “We are creating a company that is at the forefront of multimedia categories, united in the largest territories and with the scale and focus to deliver the most compelling content experience to Spanish-speaking consumers around the world. We are convinced that this strategic transaction will maximize the potential of our content segment, while enabling us to strengthen our balance sheet and focus on growth opportunities in our telecom business. “

The deal is expected to close later this year, pending approval from both the US and Mexico, and pending approval from Televisa’s shareholders. The boards of the two companies have already signed the transaction.