The merger is expected to much better position both business in a brand-new world dominated by international streaming services.
With the merger, Televisa and Univision both expect to attain “efficient material costs” and cost savings that will allow the business to provide profits before interest, taxes, devaluation and amortization at a really healthy 45% margin. Much of those cost savings come from producing material in Mexico.
Televisa is such an institution in Mexico that the deal came with some commitments by the broadcaster to preserve the Mexican operation of its news material.
Televisa and Univision and a long history. The precursor to Univision was established in 1961 as a single TV station in San Antonio, Texas, by Emilio Azcárraga Vidaurreta, grandfather of existing Grupo Televisa chief Emilio Azcárraga Jean.
” News content production for Mexico will be outsourced from a company owned by The Azcárraga household to ensure that news content remains in Mexican hands and is produced in Mexico. Televisa-Univision will keep all possessions, IP and library associated to Televisas News department,” the press release mentioned.
In 2017, Univision appointed its previous head of news Isaac Lee to become Chief Content Officer of both business and supervise entertainment operations.
Univision was offered in 2015 by a group of private financiers led by Haim Saban, to a new group of investors headed by Davis ForgeLight banner and SearchLight Capital, in a deal valued at about $8 billion-$ 9 billion.
Univision and Televisa have actually concerned terms on a merger agreement, a long-awaited offer that will produce a Spanish-language TELEVISION giant with broad reach in Mexico and the U.S
Beyond the Televisa-Univision umbrella, Televisa will keep ownership of izzi Telecom, Sky and other organizations and the real estate associated with the production centers, the broadcasting licenses and transmission infrastructure in Mexico.
. The deal requires Televisa to contribute its media, content and production possessions and a handful of networks to a brand-new entity to be called Televisa-Univision. Televisas assets are valued at $4.8 billion. The new company will be led by Univision CEO Wade Davis, who headed the investor group that got Univision in early 2020.
Battling with sector -broad challenges facing their core broadcasting companies, both Univision and Televisa have actually seen shakeups in their executive ranks. At Univision, Falco revealed his strategies to leave in March 2018 simply four months after he signed a two-year agreement extension. In late 2017, Azcarraga Jean stepped down after 20 years at the helm of the Mexican media empire his grandfather co-founded, although he stays executive chairman of the board. A failed bid for an IPO required Univision to rearrange, laying off some 200 workers in the middle of strategies to sell a few of its digital assets.
” We have actually been deeply included with Univision for more than 20 years, and we have actually never delighted in a much better relationship with our partners,” stated de Angoita and Televisa co-CEO Bernardo Gómez. “We are creating a company which is a leader throughout multi-media classifications, combined over the largest territories and with the scale and focus to provide the most engaging content experience to Spanish-language consumers worldwide. We are confident that this tactical transaction will maximize the potential of our Content segment, while enabling us to enhance our balance sheet and concentrate on growth opportunities at our Telecom service.”
Televisa has been an equity and content partner of Univision for more than 40 years. The business have actually talked about combining on and off in the past although the FCCs foreign ownership rules avoid a straight-out takeover of Univisions TV stations by Televisa.
The relationship has not constantly been smooth. The bad blood between both companies culminated in Televisas breach of contract suit versus Univision landing them both in a Los Angeles court in 2009. The fight over royalties ended with both celebrations reaching a settlement prior to then Grupo Televisa chairman Emilio Azcarraga Jean was poised to take the stand.
By July 2018, Lee was gone after another shake-up at Univision where TELEVISION vet Vincent Sadusky took control of the CEO reins from Randy Falco. The company began to offer and restructure off the English-language digital organizations that Lee had promoted.
When was the indisputable leader of Spanish-language TV in the U.S, Univision. Over the past decade NBCUniversal-owned Telemundo came on strong with resources for high-profile shows such as World Cup and Olympics rights. Telemundo also was early to try out U.S.-produced programs for u.s.-born and multilingual Hispanic audiences. Univision, on the other hand, relied for several years on the success of novelas produced for the Mexican market by Televisa.
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Televisa is among the biggest producers of material on the planet. In 2015 it produced some 86,000 hours entertainment, news, sports and unscripted programs. The union with Univision enables the 2 to combine forces to introduce a Spanish-language streaming service to serve the U.S., Mexico and the rest of the Spanish-speaking world.
Televisa will be the biggest investor in Televisa-Univision with a 45% stake; at present the business owns about 36% of Univision. Univision will pay Televisa $3 billion in cash, another $750 million in Univision shares and $750 million in preferred Univision shares that promise an annual dividend of 5.5%. The deal will be funded by a $1 billion equity investment from SoftBank Latin American Fund, with involvement from Google and Raine Group and $2.1 billion in financial obligation commitments set up by J.P. Morgan. The offer is anticipated to close later this year.
” 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 material engine in the world,” stated Davis. “Televisa-Univision will emerge as the leading worldwide Spanish-language multi-media business, uniquely placed to capture the substantial market opportunity for Spanish speakers worldwide.”
Alfonso de Angoitia, at present Televisa co-CEO, will function as executive chairman of the Televisa-Univision board. Marcelo Claure, CEO of SoftBank International, will become vice chairman.
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Televisa will be the biggest investor in Televisa-Univision with a 45% stake; at present the business owns about 36% of Univision. Univision will pay Televisa $3 billion in cash, another $750 million in Univision shares and $750 million in favored Univision shares that promise an annual dividend of 5.5%. The bad blood between both business culminated in Televisas breach of agreement suit versus Univision landing them both in a Los Angeles court in 2009.
. The new business will be led by Univision CEO Wade Davis, who headed the financier group that acquired Univision in early 2020.
Univision and Televisa have come to terms on a merger contract, a long-awaited deal that will produce a Spanish-language TV giant with broad reach in Mexico and the U.S