16:01 PDT 13-4-2021
by
Rick Porter
The two companies unveiled a $ 4.8 billion deal to combine media, production and content assets.
Two of the largest Spanish media companies in the world plan to merge.
Televisa and Univision in Mexico will combine media, production and content into a new company called Televisa-Univision, the two announced on Tuesday. Univision will pay about $ 4.8 billion for Televisa’s content assets.
Wade Davis, CEO of Univision, will hold the same title in the combined company, with Alfonso de Angoitia, co-CEO, serving as CEO of the board. Televisa will have the largest share in the new venture, with 45% equity.
The merger will be funded in part by $ 1 billion on the new Series C equity investment 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 commitments arranged by JP Morgan.
The merger would create the largest Spanish media industry in the world with bases in the two largest Spanish-speaking markets: Mexico and the United States. Televisa is a production power station that will deliver approximately 86,000 hours of content by 2020, and both companies have large packages for sports rights.
“This strategic combination generates significant value for shareholders of both companies and will enable us to reach all Spanish audiences more efficiently with more of our programming,” said Emilio Azcárraga, executive chairman of the Televisa board. “Together, Televisa-Univision can 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 this combination offers . “
Univision’s Davis added: “This transformative combination brings together the leading network serving American Spanish audiences with the leading media platform in Mexico powered by the most powerful Spanish language content in the world. Televisa-Univision will emerge as the leading global Spanish. language-multimedia enterprise, uniquely positioned to seize the significant market opportunity for Spanish speakers worldwide. ‘
Grupo Televisa’s assets in Mexico include four air channels, 27 pay-TV networks, the Videocine film studio and the Blim TV SVOD service, as well as a telecommunications business. Univision Holdings Inc. has the Univision and UniMas broadcast networks, 61 local TV stations and 58 radio stations, as well as digital assets, including the recently launched AVOD platform PrendeTV.
“We have been deeply involved with Univision for over two decades, and we have never enjoyed a better relationship with our partners,” said Televisa co-CEOs Bernardo Gómez and de Angoitia. “We are creating a business that is a leader in multimedia categories, unites across the largest areas and with the scale and focus to deliver the most compelling content experience to Spanish consumers around the world. We are confident 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 telecommunications business. ‘
The deal is expected to close later this year, pending approval by the US and Mexico and approval by Televisa shareholders. The boards of directors of the two companies have already signed the transaction.