Univision Files for IPO, Boosts Partnership with Televisa

NEW YORK: U.S. Latino media giant Univision Holdings, which operates the highly successful Spanish-language network Univision, has begun the process of taking its stock public just at it strengthens its relationship with Mexico's Grupo Televisa.

Univision took the first steps today of filing a registration statement with the SEC, which nevertheless did not outline how many shares would be offered or the IPO’s price range. Morgan Stanley, Goldman Sachs and Deutsche Bank Securities have been tapped to underwrite the proposed offering. Several private equity firms currently control the company, with investor Haim Saban serving as the largest shareholder through his Saban Captial Group.

Along with the IPO news, Univision announced it has strengthened its relationship with Mexico’s Grupo Televisa, with both companies inking a memorandum of understanding set to extend their licensing agreement to at least 2030. That extension is subject to the completion of Univision’s IPO with no change of control in the company.

Additionally, the deal features changes in the way Univision manages royalties paid out to Televisa, which produces content aired on the U.S. company’s many platforms. The new agreement will see Televisa lower the percentage it receives, while Univision will make certain additional revenue subject to royalties.

As a result of the partnership extension, Televisa will hold 22 percent of the voting rights of Univision’s common stock. This will also provide Televisa the right to designate a minimum number of directors to Univision’s board of directors.

“These amendments to the [program licensing agreement] and the terms of our MOU underscore the strength of Univision’s relationship with Televisa and the significant and unique benefits of our mutually beneficial partnership,” said Randy Falco, the president and CEO of Univision. “By taking these steps and our pursuit of other related initiatives, Univision is in a stronger competitive position going forward. Televisa is the best Spanish-language content producer in the world, and we are pleased to continue to have its support as we enter the next exciting chapter of Univision’s history.”

Added Alfonso de Angoitia, the executive VP of Grupo Televisa: “We are excited to enter into a new phase in the relationship with Univision, the leading media company serving Hispanic America. Univision today is one of the most successful and diversified media organizations globally thanks to the hard work and dedication of Randy Falco and his team. With these transactions we strengthen our relationship further and reiterate our full commitment to Univision and its future. On a personal note, I want to thank Haim Saban for his leadership of the Company and personal dedication in bringing these transactions to fruition.”