Univision and Televisa to merge; Google amongst traders.

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Univision Communications and Grupo Televisa plan to merge their leisure property to create a robust new Spanish-language media firm with one foot in the USA and the opposite in Mexico.

The businesses collectively introduced the transfer late Tuesday, formalizing a course of that started quietly after Univision got here beneath new possession late final 12 months. The historic merger represents a dramatic retrenchment for media scion Emilio Azcárraga Jean, whose household has lengthy been amongst Mexico’s powerbrokers resulting from its possession of Televisa and different huge media holdings.

The deal is predicted to shut later this 12 months. The brand new entity, which might be referred to as Televisa-Univision, would be the world’s largest Spanish-language media firm. It will likely be managed by Univision Chief Government Wade Davis, a former high Viacom government who put collectively the investor group that bought Univision late final 12 months from a consortium of U.S. non-public fairness companies.

The union underscores the stress going through conventional media giants.

In Mexico, Televisa has struggled to adapt to the streaming period and has misplaced a few of its viewers to Netflix. Though the corporate produced greater than 86,000 hours of content material final 12 months, its signature telenovelas haven’t linked with younger audiences. The corporate does have invaluable rights to sports activities and particular occasions and produces information, films, actuality reveals, youngsters’s applications and academic programming.

Miami-based Univision, which has lengthy relied closely on Televisa’s low-cost telenovelas to fill its prime-time schedule, additionally faces elevated competitors from Telemundo, which is owned by NBCUniversal, in addition to English-language channels, YouTube and streaming providers.

Throughout the 14 years Univision was managed by Los Angeles billionaire Haim Saban and different traders, it squandered its management place within the U.S. Spanish-language market amid a failed foray into English-language programming.

Televisa, primarily based in Mexico Metropolis, will retain 45% curiosity within the new entity. It stated it might contribute its 4 broadcast TV channels, 27 pay-TV networks, Videocine film studio and Blim TV subscription video-on-demand service, in addition to the long-lasting Televisa trademark.

Univision will add its Univision and UniMás broadcast networks, 9 Spanish-language cable networks, 61 tv stations and 58 radio stations within the U.S. and Puerto Rico, together with its just lately launched streaming service PrendeTV. Its administration group might be in cost.

“This transformative mixture brings collectively the main community serving U.S. Spanish-language audiences with the main media platform in Mexico powered by essentially the most highly effective Spanish-language content material engine on this planet,” stated Davis. “Televisa-Univision will emerge because the main world Spanish-language multimedia firm, uniquely positioned to seize the numerous market alternative for Spanish audio system worldwide.”

Televisa valued its property at $4.8 billion.

Underneath the phrases of the settlement, Univision pays Televisa $3 billion in money and supply $750 million in Univision widespread fairness and $750 million in Sequence B most well-liked fairness.

The transaction was partially financed by a $1-billion funding sequence led by the SoftBank Latin America Fund with participation from Google, the Raine Group and Davis’ agency, ForgeLight, and $2.1 billion of debt commitments organized by J.P. Morgan.

As a part of the deal, Televisa will retain possession of Izzi Telecom, Sky and different companies and actual property related to the Mexico manufacturing amenities. It’s going to additionally preserve the Mexican government-issued broadcasting licenses and its transmission infrastructure in Mexico.

“This strategic mixture generates important worth for shareholders of each corporations and can permit us to extra effectively attain all Spanish-language audiences with extra of our programming,” Azcárraga Jean, government chairman of the Televisa board of administrators, stated. “Collectively, Televisa-Univision can extra aggressively pursue innovation and progress by digital platforms because the trade continues to evolve.”

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