Mexico’s Televisa says to merge content with Univision in new media company

MEXICO CITY, April 13 (Reuters) – Grupo Televisa (TLEVISACPO.MX), Mexico’s biggest broadcaster, will combine content with U.S. broadcaster Univision to create a new Spanish-language media company with plans to launch a global streaming platform, Televisa said. tuesday.

The new company, called Televisa Univision, will offer content from both broadcasters, including series, movies, sports and soap operas known as “telenovelas”, Televisa said, adding that it will be the “largest Spanish-language media company in the world”. .”

The transaction was partially funded by a $1 billion Series C preferred investment led by the SoftBank (9984.T) Latin American Fund, with participation from ForgeLight, Google and The Raine Group, Televisa said in a news release. hurry.

Televisa, which will be the largest shareholder in the new company, would contribute its content assets with a total value of $4.8 billion. Univision, the largest American Spanish-language broadcaster, will pay $3.0 billion in cash, $750 million in Univision common stock and $750 million in Series B preferred stock, with an annual dividend of 5, 5%.

“This strategic combination generates significant shareholder value for both companies and will allow us to more effectively reach all Spanish-speaking audiences with more of our programming,” said Emilio Azcarraga, Executive Chairman of the Board. of Televisa, in a prepared statement.

Televisa-Univision plans to launch a global streaming platform for the “very underserved Spanish-speaking market” in early 2022, the statement said, competing with other big companies like Netflix (NFLX.O).

“The objective of this transaction is to create a globally competitive player in the streaming market,” a Televisa spokeswoman told Reuters.

Televisa already distributes Univision-exclusive content, including its telenovelas, for the broadcaster’s Spanish-speaking viewers in the United States.

Searchlight Capital Partners and ForgeLight completed a majority purchase of Univision late last year. Televisa maintained its minority stake and programming license agreement with the company.

Televisa will remain the largest shareholder of Televisa-Univision with a 45% stake. It will continue to own and operate izzi Telecom, Sky Mexico and other businesses, as well as its major real estate production facilities, broadcast licenses and transmission infrastructure in Mexico, he said.

Univision chief executive Wade Davis will lead the new media company. The transaction, which is expected to close this year, will be subject to regulatory approvals in the United States, Mexico and Televisa shareholder approval.

After closing, Televisa will continue to expand its telecommunications business in Mexico, he said, and will use proceeds received from Univision primarily to repay debt. Its content production and operations in Mexico will continue to be led by Azcarraga, along with Bernardo Gomez and Alfonso de Angoitia, co-CEOs of Televisa.

Reporting by Cassandra Garrison; Editing by Christian Plumb

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