January 21, 2022

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Mexican media giant Televisa to merge content business with Univision

Mexican media giant Televisa to merge content business with Univision

Grupo Televisa S.A.B (“Televisa”), one particular of the greatest media corporations in Latin The united states, on Tuesday agreed to merge its articles assets with Univision Communications, the biggest Spanish-language broadcaster in the U.S.

Why it matters: The deal will build just one of the biggest Spanish-language media corporations in the environment, and will help deliver a lot more Spanish-language streaming material alternatives.

  • The U.S. is the greatest Spanish-language media marketplace by worth globally and Mexico is the most populous Spanish-language industry in the earth, the firms noted in a joint push release.

What is actually in it for Univision: The scale will aid the organization compete versus NBCUniversal’s Telemundo, which has received ground in the Spanish-language information wars in the U.S. in new several years.

What is in it for Televisa: Shedding its information property will allow the enterprise to concentration on rising its telecom marketplace when strengthening its harmony sheet.

Facts: The recently merged firm, called “Televisa-Univision,” will include the media, content material and manufacturing property from Televisa and all of Univision’s assets.

  • Televisa’s belongings include things like its 4 over-the-air broadcast channels, its 27 spend-Television set networks channels and stations, its “Videocine” movie studio and “Blim” Tv membership streaming company, and the Televisa trademark.
  • Univision’s assets include its two broadcast networks — Univision and UniMás — its nine Spanish-language cable networks, its 61 Television stations, its 58 radio stations and its recently introduced advertisement-supported streaming provider, PrendeTV.
  • Univision CEO Wade Davis will direct the combined enterprise. Televisa co-CEO Alfonso de Angoitia will provide as govt chair of the Televisa-Univision board of administrators. Marcelo Claure, CEO of SoftBank Global, will turn into vice chair of the board.

By the numbers: To enable finance the offer, the newly put together enterprise will obtain a $1 billion investment decision led by the SoftBank Latin The usa Fund with participation from Google, The Raine Team and ForgeLight, an investment decision organization begun by Davis, who was previously the CFO of Viacom.

  • Televisa claims its content property will be valued at about $4.8 billion. The media large will get $3 billion in hard cash for its investments from Univision, and about $1.5 billion in Univision equity. Univision will choose on close to $2.1 billion in debt to finance the deal.

Capture up rapid: The offer ends a prolonged cycle of uncertainty for Univision, which has struggled to land on its toes just after a rocky non-public fairness takeover led to a drawn-out IPO attempt that ultimately failed.

  • Univision bought the greater part of its enterprise to a team of traders led by Davis final year, following battling to discover a strategic consumer pursuing the IPO saga.
  • Televisa retained its ~36% stake in Univision as a element of that offer. The two corporations have partnered on written content for a long time.

What to look at: Streaming innovation in Spanish-language programming has lagged, in element owing to the lack of scale amongst any 1 Spanish-language media corporation.

  • The two corporations reported the Spanish-language industry “is noticeably underserved from a streaming perspective relative to other major markets,” noting that less than than 10% of the Spanish-talking population at the moment use an electronic video solution, when compared with the practically 70% of the populace in the English-talking industry, for every a assertion announcing the offer.