“We are extremely pleased to have reached this important agreement, which fully aligns the interests of Univision and Televisa for the long-term as both companies work to further serve the substantial growth opportunities in Spanish-language media in the United States,” said Haim Saban, Chairman of Univision Communications, on behalf of Univision owner Broadcasting Media Partners, Inc., which includes Madison Dearborn Partners, Providence Equity Partners, Thomas H. Lee Partners, TPG Capital, and Saban Capital Group. “Univision is performing strongly, and this strategic partnership uniquely positions the Company for the foreseeable future.”Emilio Azcarraga Jean, Chairman, President and Chief Executive Officer of Grupo Televisa, said, “This transaction with Univision provides Televisa with a highly attractive strategic platform for the continued distribution of our content in the U.S. marketplace, our most important media marketplace outside of Mexico, and, in turn, to realize enhanced value for our stakeholders. As the largest media company in the Spanish-speaking world, Televisa has an unrivaled understanding of Spanish-language media markets. We are especially optimistic about the long-term growth potential of the U.S. Hispanic media marketplace, and our economic interest in this premier platform through Univision should further enable us to participate in - and benefit from - this potential.” “The U.S. marketplace is of paramount importance to Televisa’s strategy of expanding our reach beyond Mexico and maintaining our leadership as the leading media company in the Spanish-speaking world,” commented Alfonso de Angoitia, Executive Vice President of Grupo Televisa. “Accordingly, we have been working diligently to realize the value of our content in the U.S. We are confident that this investment in Univision achieves our objectives while positively improving our financial results from day one and providing us with the opportunity to benefit in the economic upside of this venture.” “This agreement will greatly expand and deepen the most important alliance in Spanish-language media today, as it underscores that Univision’s broadcast and interactive platforms will remain the U.S. destination for the world’s best Spanish-language programming for the foreseeable future,” said Joe Uva, Chief Executive Officer of Univision Communications Inc. “We look forward to continuing to work closely with our partners at Televisa in parallel with the ongoing activities of Univision Studios to ensure we are providing our audiences with the most successful and relevant content across our television and interactive platforms, and our clients with the most creative and flexible solutions. In addition to providing considerable benefits to our audiences and clients, today’s agreement will greatly strengthen Univision’s balance sheet.”
Under the terms of the transaction:
- Univision will receive exclusive Spanish-language broadcast and digital rights to Televisa audiovisual programming in the United States.
- Univision will receive the U.S. rights to broadcast Mexican soccer games for which Televisa owns or controls the U.S. rights, beginning with select teams in 2011 and expanding to all teams to which Televisa has the rights in 2012.
- Televisa’s 50 percent interest in its joint venture with Univision that owns TuTV, which broadcasts some of Televisa’s pay television channels in the U.S., will be contributed to Univision for a payment to Televisa of $55 million, which results in Televisa’s net investment in Univision of $1.2 billion.
About Broadcasting Media Partners, Inc.:Broadcasting Media Partners Inc, is an investor group that bought Univision in 2007. It is comprised of Madison Dearborn Partners, Providence Equity Partners, Thomas H. Lee Partners, TPG Capital, and Saban Capital Group. Univision Safe Harbor This document contains forward-looking statements that involve risks and uncertainties, including those relating to Univision’s future success and growth. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: failure of the closing conditions to the Televisa investment and new program license arrangements to be satisfied on a timely basis, or at all, any impact of the economic crisis on Univision’s business and financial condition, including reduced advertising revenue; failure to service its debt; inability to comply with its bank credit agreement governing its senior secured credit facilities, including financial covenants and ratios; cancellation, reductions or postponements of advertising; write downs of the carrying value of assets due to impairment; inability to realize the full value of its intangible assets; failure of its new or existing businesses to produce projected revenues or cash flows; its reliance on Televisa for a significant amount of its network and other programming; failure to obtain the benefits expected from cross-promotion of media; regional downturns in economic conditions in those areas where its stations are located; possible strikes or other union job actions; changes in the rules and regulations of the Federal Communication Commission; impact of a new audience measurement system on ratings of its radio stations; a decrease in the supply or quality of programming; an increase in the cost of programming; the acceptance of its in-house programming and its profitability; changes in the size of the U.S. Hispanic population; the impact of federal and state immigration legislation and policies on both the U.S. Hispanic population and persons emigrating from Latin America; an increase in the preference among Hispanics for English-language programming; the decrease in demand for its programming due to the transition to digital television; the need for any unanticipated expenses; competitive pressures from other broadcasters and other entertainment and news media; potential impact of new technologies; Televisa prevailing on its appeal with respect to the trial on Internet issues; unanticipated interruption in its broadcasting for any reason, including acts of terrorism; and a failure to achieve profitability, growth or anticipated cash flows from acquisitions.