The Mexican multimedia mass media company Televisa merges with American Spanish-language free-to-air television network, Univision for a $4.8 billion in which Televisa will contribute its content assets.
The New combined company, Televisa-Univision will create the global leader in spanish-language media,Televisa-Univision will have the operating assets, financial scale and audience reach to accelerate its digital transformation and deliver a differentiated streaming proposition to the underserved global Spanish-language population.
Televisa will also contribute its four free-to-air channels, 27 pay-TV networks channels and stations, its Videocine movie studio and Blim TV subscription video on demand (SVOD) service; and the Televisa trademark. These media assets comprise the definitive market leader in Mexico.
The Spanish-language market, which represents around 600 million people globally, and an aggregate GDP of about $7 trillion, is significantly underserved from a streaming perspective relative to other major markets.
Less than 10% of the Spanish speaking population currently use an OTT video product, compared with the English language market where nearly 70% of the population has at least one streaming service.
Emilio Azcárraga, The Executive Chairman of the Televisa Board of Directors said:
“This strategic combination generates significant value for shareholders of both companies and will allow us to more efficiently reach all Spanish-language audiences with more of our programming,”
“Together, Televisa-Univision can more aggressively pursue innovation and growth through digital platforms as the industry continues to evolve. Our new investors at the SoftBank Latin America Fund, Google and The Raine Group are just as excited about the opportunities presented by this combination.”
The CEO of Univision Wade Davis said:
“This transformative combination brings together the leading network serving U.S. Spanish- language audiences with the leading media platform in Mexico powered by the most powerful Spanish-language content engine in the world,” said Univision CEO Wade Davis,”
“Televisa-Univision will emerge as the leading global Spanish-language multi-media company, uniquely positioned to capture the significant market opportunity for Spanish speakers worldwide.”
