Univision is buying Grupo Televisa's content assets in a $4.8 billion transaction that will combine two of the biggest Spanish-language producers in the world.
Televisa, which is based in Mexico, will see its content and media assets will be rolled into Univision and create a new company called Televisa-Univision. The combination brings together the two leading media businesses in the two largest Spanish-speaking markets in the world: Univision in the United States, the largest Spanish-language media market by value, and Televisa in Mexico, which is the most populous Spanish-language market in the world.
Univision is paying Televisa $3 billion in cash, with another $1.45 billion in equity. The total value of the transaction is $4.8 billion. Televisa-Univision will get a $1 billion equity investment by a consortium led by SoftBank Group.
Univision CEO Wade Davis will lead the combined company, and Grupo Televisa's co-CEO Alfonso de Angoitia will serve as executive chairman of the Televisa-Univision board of directors. Marcelo Claure, CEO of SoftBank International, will become vice chairman of the board.
Televisa will be 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 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 make up the definitive market leader in Mexico.
"This transformative combination brings together the leading network serving U.S. Spanish-language audiences with the leading media platform in Mexico powered by the most powerful Spanish-language content engine in the world," Davis said. "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."
"This strategic combination generates significant value for shareholders of both companies and will allow us to more efficiently reach all Spanish-language audiences with more of our programming," said Emilio Azcárraga, executive chairman of the Televisa board of directors. "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."