Televisa-Univision leading global Spanish-language multi-media company

Televisa and Univision announced a definitive transaction agreement in which Televisa’s content and media assets will be combined with Univision to create the largest Spanish-language media company in the world: Televisa-Univision.

Televisa 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; and the Televisa trademark. These media assets comprise the definitive market leader in Mexico.

The Company will further benefit from Univision’s market-leading assets in the United States: Univision and UniMás broadcast networks, nine Spanish-language cable networks, 61 TV stations, and 58 radio stations in major U.S. Hispanic markets and Puerto Rico, and prominent digital assets including AVOD PrendeTV.

The combined entity will have the content, production capacity, intellectual property, global reach, and financial resources to aggressively pursue the relatively nascent global Spanish-language streaming opportunity.

“This strategic combination generates significant value for shareholders of both companies. 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 just as excited about the opportunities presented by this combination,” said Emilio Azcárraga, Executive Chairman of the Televisa Board of Directors.

“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,” said Univision CEO Wade Davis.

“We have been deeply involved with Univision for more than two decades, and we have never enjoyed a better relationship with our partners,” said Bernardo Gómez and Alfonso de Angoitia, Televisa’s Co-Chief Executive Officers.

“The SoftBank Latin America Fund is proud to invest in the combination of Televisa-Univision to help create a content powerhouse that can serve the nearly 600 million Spanish-language speakers globally,” said Marcelo Claure, CEO of SoftBank Group International and board member of Univision.

Televisa will continue to capture the upside from the significant growth potential of the Company by remaining the largest shareholder in Televisa-Univision with an equity stake of approximately 45%. As a part of the agreement, Televisa 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.

Televisa’s content assets will be contributed for approximately US$4.8 billion. Under the terms of the agreement, Univision will pay US$3.0 billion in cash, US$750 million in Univision common equity and US$750 million in Series B preferred equity, with an annual dividend of 5.5%. The combination will be financed through US$1.0 billion of new Series C preferred equity investment led by the SoftBank Latin American Fund, along with current Univision investor ForgeLight LLC, with participation from Google and The Raine Group; and US$2.1 billion of debt commitments arranged by J.P. Morgan.

News content production for Mexico will be outsourced from a company owned by The Azcárraga family to guarantee that news content remains in Mexican hands and is produced in Mexico. Televisa-Univision will retain all assets, IP, and library-related to Televisa’s News division.

The transaction is expected to close in 2021, subject to customary closing conditions, including receipt of regulatory approvals in the United States and Mexico, and Televisa shareholder approval. The Board of Directors of both Televisa and Univision have already approved the combination.

Univision CEO Wade Davis will lead the combined company, Alfonso de Angoitia will serve as Executive Chairman of the Televisa-Univision Board of Directors, and Marcelo Claure, CEO of SoftBank International will become Vice Chairman of the Board.