Mexican television broadcaster has agreed a $ 4.8 billion deal with Univision
Mexico’s main media company Televisa and the U.S. company Univision have agreed to merge $ 4.8 million in content, sponsored by Japan’s SoftBank, to offer a Spanish streaming service like Netflix.
In recent days, much has been said that the agreement to deposit Televisa in New York increased U.S. bills by 8.7 percent in overtime negotiations.
The company said in a statement that Televisa will combine its media, content and active production – from soaps to sporting events – with Univision, the major Spanish-language broadcaster in the US, creating a “global leader in Spanish-language media”.
The new company will aim to launch a global streaming service early next year to reach the 600m consumer market.
“As the definitive leader in the Spanish media, Televisa-Univision will have the active assets, financial scale and audience to accelerate its digital transformation and provide a different streaming proposal to the minimum population of the Spanish world,” the groups said. in a statement.
Televisa, which will make up 45 percent of the U.S. company, will provide $ 4.88 billion in content, as well as four free channels, 27 paid outlets, a Videocine film studio and a Blim TV video order. service.
Univision will pay $ 3 billion in cash and $ 1.5 billion in Univision stock, and the rest will be funded by other sources. This will allow Televisa to pay its debts.
The company said the deal was expected to significantly reduce the combination of net debt leverage and margins.
As part of the transaction financing, SoftBank’s Latin American Fund will issue a $ 1 billion debt involving Google, Raine Group and ForgeLight, Univision’s current investors.
Univision’s assets include the Univision and UniMás networks, nine Spanish cable networks, 61 televisions and 58 radio stations, as well as the recently launched streaming service, PrendeTV.
“This strategic combination creates great value for the shareholders of both companies and with our more programming will allow us to reach all Spanish-speaking audiences more efficiently,” said Emilio Azcárraga, CEO of Televisa.
The content will be largely generated in Mexico and “the consolidated financial strength will allow the company to invest in the planned global streaming platform expected in early 2022,” the statement said.
Wade Davis, chief executive of Univision, will lead the joint venture, with Alfonso de Angoitia of Televisa as CEO. Marcelo Claure, CEO of SoftBank, will become vice president.
The company has been in close contact for more than two decades and Televisa said the agreement is expected to “strengthen our balance sheet and channel growth opportunities in our telecommunications business,” as well as maintain them, production facilities and Mexican licenses.