Televisa Y Univision confirmed that received approval from the regulatory authorities in the United States for merge your assets of media, content and production, which will allow the creation of a global media company in Spanish (Televisa-Univisión).
It is worth mentioning that during March 2021, the anticipated asset mix between the two companies, through a fusion which would be aimed at generating world’s largest content librarywith a strong portfolio of intellectual property, as well as global sports rights.
At the time it was reported that Televisa would contribute with assets of content for an estimated amount of $4.8 billionof which 62.5 percent are in cash (3 billion dollars), 31.25 percent of Univisión Capital (1.50 million dollars) and the remaining 6.25 percent from other sources (300 million dollars.
The merger will be partially financed as follows: 1) An investment of one billion dollars (new series “C” shares) corresponding to SoftBank Latin America Fund with a participation of Google, The Rain Group and ForgeLight and 2) A Commitment debt of 2.1 billion dollars coordinated by JP Morgan.
In September 2021, in Mexico the full of Federal Telecommunications Institute (IFT) announced the approval of the concentration between Univision and Televisa to create a new firm that aims to be the largest Spanish-speaking media group in the world, as well as launch a streaming platform, with which it seeks to compete with Netflix, Prime Video, Claro Video, Disney Plus and HBO Max, among others.
The telecommunications regulatory body explained that the merger of the companies does not foresee anti-competitive effects derived from the Transaction in these coincident activities of Univision Holdings and Grupo Televisa, largely due to the marginal participation of Univision in Mexico. The authorization granted by the IFT does not prejudge the authorizations that the parties must obtain from other instances.
The IFT specified that Televisa will maintain ownership of the telecommunications and broadcasting concessions in Mexico, under which it operates its broadcast television and cable and satellite distribution of audiovisual content, including channels that are programmed by “Sky” and ” Izzi” and the advertising they have the right to market.
In addition, it will maintain its print publishing, telephony, internet, and related telecommunications services businesses, as well as the operation of soccer teams, stadiums, and games of chance.
It should be remembered that in April Televisa and Univisión announced the merger of their portfolios that will cover more than 300,000 hours of programming, coupled with Televisa’s production capacity, which last year produced more than 86,000 hours of entertainment, sports, and news content. and special events.
Also as part of the operation, Grupo Televisa will receive a value of 4.8 billion dollars and will become the largest shareholder of the new Televisa-Univision, acquiring 45 percent of its shares.
It is estimated that Televisa-Univision will be a company that reaches estimated joint sales in the order of 4 billion dollars and an EBITDA of 1.6 billion dollars, with a margin greater than 40 percent post-synergies derived from the integration.