Televisa Univision: The Spanish-Language Media Giant

Televisa Univision was formed through a merger between Televisa and Univision, creating the world’s largest Spanish-language media company. This powerhouse combines the strengths of two market leaders: Univision in the U.S. and Televisa in Mexico.

A Content Powerhouse Serving the Global Spanish-Speaking Market

The merger unites the largest long-form content libraries in the world, a vast intellectual property portfolio, and extensive global sports rights. Televisa’s prolific production infrastructure, generating over 86,000 hours of diverse content in 2020 alone, fuels this expansive library. This includes sports, dramas, news, comedies, reality shows, and children’s programming.

Televisa’s contributions include four free-to-air channels, 27 pay-TV networks, Videocine movie studio, and the Blim TV subscription service. Univision brings to the table its Univision and UniMás broadcast networks, nine Spanish-language cable networks, numerous television and radio stations, and digital platforms like the PrendeTV streaming service.

Targeting the Underserved Global Spanish-Language Streaming Market

Televisa Univision is strategically positioned to capitalize on the growing global Spanish-language streaming market. With approximately 600 million Spanish speakers globally and a combined GDP of around $7 trillion, this market presents a significant opportunity. Currently, less than 10% of Spanish speakers use an OTT video product, compared to nearly 70% in the English-language market.

Leadership and Strategic Vision of Televisa Univision

Emilio Azcárraga, Executive Chairman of the Televisa Board of Directors, emphasized the value creation for shareholders and the enhanced ability to reach Spanish-language audiences. Univision CEO Wade Davis highlighted the transformative nature of the combination, positioning Televisa Univision as the leading global Spanish-language multimedia company.

Transaction Details and Financial Outlook for Televisa Univision

Televisa remains the largest shareholder in Televisa Univision with a 45% stake. Televisa retains ownership of izzi Telecom, Sky, and other businesses. The transaction involved a combination of cash, equity, and preferred equity, totaling approximately $4.8 billion. Financing included a $1.0 billion investment led by SoftBank Latin American Fund and $2.1 billion in debt commitments.

Post-transaction, Televisa Univision’s net debt leverage ratio is projected to decrease to approximately 5.0x, with run-rate synergies of $200 to $300 million. The company anticipates an EBITDA margin close to 45%. The combined financial strength will enable investment in the launch of a global streaming platform, expected in early 2022.

Televisa’s Post-Merger Focus

Televisa will focus on expanding its Telecom business in Mexico, providing high-speed internet and content aggregation. Proceeds from the transaction will primarily be used to reduce debt and invest in core businesses. Televisa’s net debt leverage ratio is expected to fall below 2.0x.