The world's leading Spanish-language media companies – Univision Communications Inc. (“Univision”) and Grupo Televisa, S.A.B. (“Televisa”, NYSE: TV; BMV: TLEVISA CPO) – today announced the completion of Televisa’s previously-announced investment in Univision and the significant expansion and extension of the Program License Agreement (the “PLA”) between the two companies.
This transaction further strengthens the largest content and multi-distribution media platform for the growing U.S. Hispanic community, and enables both companies to enhance their respective business potential and value creation opportunities.
As a result of the successful refinancing of the majority of Univision’s debt, upon completion of the Televisa investment and application of the net proceeds to repay a portion of the Univision 2015 senior notes, the term of the PLA will be extended to at least 2025 or seven and one-half years after Televisa has sold most of its initial investment in Univision. The companies also noted that in addition to the U.S. PLA, which now includes Televisa programming for Univision’s traditional and digital media platforms, the two companies have also signed a program license agreement for the territory of Mexico (the “Mexico License Agreement”) under which Televisa has received the right to broadcast Univision´s content in Mexico .
In connection with the investment, three Televisa representatives joined the Univision Board of Directors, which increased to 20 members. Emilio Azcárraga Jean, Chairman of the Board and Chief Executive Officer of Grupo Televisa, Alfonso de Angoitia, Executive Vice President of Grupo Televisa, and Enrique F. Senior Hernández, Managing Director of Allen & Company LLC., were named to the Board of Univision. Additionally, José Bastón Patiño, President of Television and Contents and Member of the Executive Committee of Grupo Televisa, was named alternate member to the Board of Directors of Univision.
Emilio Azcárraga Jean said, “We are very pleased that we have moved rapidly from our initial announcement to the completion of this transaction. Our content has reached U.S. Hispanic audiences through Univision for many years. With a rapidly growing Hispanic population and increasing success of our content in the United States, this is a very appropriate moment in time to expand our content offerings and extend our agreement with Univision.”