Televisa Completes Univision Stake Acquisition

NEW YORK: Mexican media giant Grupo Televisa has completed its investment in Univision, which was first announced in October, as well as expanded and extended its programming licensing agreement with the U.S. Hispanic broadcaster.

As previously announced, Grupo Televisa has invested $1.2 billion in Univision Communications for a 5-percent equity stake and debentures convertible into an additional 30-percent equity stake in the future. Televisa also secured the option to acquire an additional 5-percent equity stake.

The expanded program licensing agreement grants Univision an enhanced portfolio of exclusive U.S. Spanish-language broadcast rights, as well as exclusive U.S. Spanish-language digital rights to Televisa programming. Televisa, in exchange, scored increase royalty payments. The term of the programming licensing agreement will be extended to at least 2025 or 7.5 years after Televisa has sold most of its initial investment in Univision. The enhanced agreement also gives Televisa the rights to broadcast Univision’s content in Mexico.

With the transaction, three Televisa representatives have joined Univision’s now 20-member board: Emilio Azcárraga Jean, chairman of the board and CEO; Alfonso de Angoitia, executive VP; and Enrique F. Senior Hernández, managing director of Allen & Company. José Bastón Patiño, Televisa’s president of television and content, has been named an alternate board member.

“We are very pleased that we have moved rapidly from our initial announcement to the completion of this transaction," Azcárraga said. "Our content has reached U.S. Hispanic audiences through Univision for many years. With a rapidly growing Hispanic population and increasing success of our content in the United States, this is a very appropriate moment in time to expand our content offerings and extend our agreement with Univision.”

Haim Saban, chairman of Univision Communications, added, “With the expansion and extension of the [programming licensing agreement], Univision can now better serve our audience. This further strengthens our unique relationship with the dynamic U.S. Hispanic community. The transaction brings together teams from both companies working in close partnership to identify initiatives aimed at further driving Univision’s success as one of the leading media companies in the U.S.”

Univision CEO Joe Uva called the deal a "value-creating transaction, which will significantly enhance Univision’s world-class multiplatform offerings for viewers and clients while considerably strengthening the company’s balance sheet. The refinancing of Univision’s debt was completed on terms that exceeded our expectations, reflecting the financial community’s confidence in our business and its future. We look forward to leveraging the full potential of this strategic partnership going forward to better serve our audience and build on our strong foundation to achieve additional growth."