Univision acquires Televisa in $4.8B merger deal

Univision is acquiring Televisa in a $4.8 billion merger deal that will create a massive new Spanish-language media company.

Televisa will contribute content including sports, news, scripted, unscripted, movies and educational programming. The transaction also includes four free-to-air channels, 27 pay TV networks channels and stations, Televisa’s Videocine movie studio and Blim TV subscription video on demand (SVOD) service; and the Televisa trademark.

Those assets will combine with Univision’s existing portfolio including Univision and UniMás broadcast networks; nine Spanish-language cable networks; 61 television stations and 58 radio stations in U.S. markets and Puerto Rico; and its recently launched AVOD streaming service, PrendeTV.

Televisa’s content assets are valued at approximately $4.8 billion. Under the terms of the agreement, Univision will pay $3 billion in cash, $750 million in Univision common equity and $750 million in Series B preferred equity, with an annual dividend of 5.5%. The merger is also getting financing from $1 billion of new Series C preferred equity investment led by the SoftBank Latin American along with ForgeLight, Google and The Raine Group.

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Televisa will maintain a 45% equity stake in the combined company. The transaction is expected to close in 2021.

“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 Televisa’s board, in a statement. “Together, Televisa-Univision can more aggressively pursue innovation and growth through digital platforms as the industry continues to evolve.”

“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,” said Univision CEO Wade Davis in a statement. “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.”

Davis will lead the combined company, Alfonso de Angoitia will serve as executive chairman of the Televisa-Univision board and Marcelo Claure, CEO of SoftBank International, will become vice chairman.