Univision and Televisa Join Forces in $4.8 Billion Spanish-Language Media Merger

Univision and Mexico’s Televisa—two of the biggest Spanish-language media companies—are preparing to join forces in a merger that will enable them to capitalize on the so-far sluggish Hispanic global streaming space. They will merge their media, content and production assets into a new company, Televisa-Univision, in a $4.8 billion deal, the companies said today. Televisa-Univision also received a $1 billion equity investment from a consortium led by SoftBank Group, which includes Google, The Raine Group and ForgeLight. Televisa will receive $3 billion in cash for its assets and $1.5 billion in Univision equity. Univision will finance the merger by taking on $2.1 billion in debt. The merger will combine Televisa’s content business—including four free-to-air channels, 27 pay-TV channels and stations, the Videocine movie studio and an SVOD service, Blim TV—with Univision’s assets like the Univision and UniMás broadcast networks, nine Spanish-language cable networks, 61 TV stations, 58 radio stations and PrendeTV, its new AVOD streaming service. The companies said the merger will give them the content, production capacity, global reach and financial resources necessary to take advantage of the fledgling global Spanish-language streaming space. Currently, less than 10% of the Spanish-speaking global population—around 600 million people—use an OTT service. Creating 'the leading global Spanish-language multimedia company' “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,” Univision CEO Wade Davis said in a statement. “Televisa-Univision will emerge as the leading global Spanish-language multimedia company, uniquely positioned to capture the significant market opportunity for Spanish speakers worldwide.” As part of the agreement, Televisa will retain ownership of Izzi Telecom, Sky Mexico and other businesses. “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 Jean, Televisa's executive chairman of the board, whose grandfather built the radio and TV conglomerate that would become Televisa. “Together, Televisa-Univision can more aggressively pursue innovation and growth through digital platforms as the industry continues to evolve.” Davis will lead the combined company. Alfonso de Angoitia, Televisa's co-CEO, will serve as executive chairman of the Televisa-Univision board of directors. Marcelo Claure, CEO of SoftBank International, will become vice chairman. Televisa, which has long been a programming provider to Univision, will be the largest shareholder in the new company, with a 45% equity stake. The transaction is expected to close later this year. The boards of both companies have already approved the deal. The merger comes just four months after former Viacom CFO Davis’ investor group acquired a 64% stake in Univision. He quickly brought in a new executive team, including Donna Speciale as ad sales chief. Last month, Davis and Speciale shared their “new vision for Univision” in a pre-upfront briefing with marketers, and urged them not to ignore Hispanic consumers. Streamers Set Eyes on Next Big Task: Winning Over the Fast-Growing Hispanic Market