NEW YORK and MEXICO CITY, Feb. 1,
2022 /PRNewswire/ -- Grupo Televisa, S.A.B
("Televisa"; NYSE:TV; BMV:TLEVISA CPO) and Univision Holdings
II, Inc. (together with its wholly owned subsidiary,
Univision Communications Inc., "Univision") today announced
the completion of the transaction between Televisa's media content
and production assets and Univision. The new company, which is
named TelevisaUnivision, Inc. (the "Company" or
"TelevisaUnivision"), creates the world's leading Spanish-language
media and content company. TelevisaUnivision will produce and
deliver premium content for its own platforms and for others, while
also providing innovative solutions for advertisers and
distributors globally.
"The close of our transaction marks a historic moment for our
company and our industry," said TelevisaUnivision CEO
Wade Davis. "We are combining
two iconic and market-leading companies that have a rich, shared
history and an incredible portfolio of assets. This combination
will create a business without comparison in the global media
landscape. Over the past year both companies have transformed
themselves, reaching levels of financial performance and audience
resonance that has not been seen for years. The power and momentum
of the transformed core business is truly unique and will be a
springboard for the upcoming launch of the preeminent
Spanish-language streaming service. The new trajectory of our
company is supported by our new ownership group, which is well
positioned to amplify the efforts of one of the best leadership
teams in the world."
"The combination of content assets from Televisa and
Univision, the two leading media companies from the two largest
Spanish-speaking markets in the world, has created a company with
tremendous potential," said Alfonso de Angoitia, Executive
Chairman of the TelevisaUnivision Board of Directors. "With our
attractive financial profile and history of innovation,
TelevisaUnivision is ready to revolutionize the industry by
delivering the most comprehensive Spanish-language content offering
to audiences around the world."
The transaction brings together the most compelling content and
intellectual property with the most comprehensive media platforms
in the two largest Spanish speaking markets in the world.
Televisa's four broadcast channels, 27 pay-TV channels, Videocine
movie studio, Blim TV subscription video-on-demand service, and the
Televisa trademark, will be combined with Univision's assets in the
U.S., which include the Univision and UniMás broadcast networks,
nine Spanish-language cable networks, 59 television stations and 57
radio stations in major U.S. Hispanic markets, and the PrendeTV
AVOD platform.
Together, TelevisaUnivision owns the largest library of
Spanish-language content and intellectual property in the world,
and the most prolific long-form Spanish-language content engine in
the industry. As a result of the combination, TelevisaUnivision
reaches over 60% of the respective TV audiences in both the U.S.
and Mexico. Across television,
digital, streaming, and audio, the Company reaches over 100 million
Spanish speakers every day, holding leading positions in both
markets.
Integration and Position as One Company
Since announcing the transaction on April
13, 2021, Univision and Televisa have each transformed their
core businesses in anticipation of the integration and are
delivering the highest levels of financial and audience growth
either company has experienced in years. The long-standing
partnership between the two businesses has allowed for improved
content and business coordination that will accelerate the
integration. These efforts uniquely position TelevisaUnivision to
begin executing immediately on a combined strategy and capture the
tremendous opportunity presented by the global Spanish-speaking
population of nearly 600 million, which represents an aggregate GDP
of approximately $7 trillion.
The companies have strategically assembled a senior management
team of world-class leaders for the global operation, combining
great professionals from Televisa and Univision, as well as
bringing in top talent from leading media and technology
companies.
In addition, the TelevisaUnivision transformation also included
the development of a massive pipeline of original content for the
upcoming global streaming launch, investing in new advertising
products in both markets, revamping the programming strategy and
executing new distribution partnerships, as well as launching the
PrendeTV AVOD service in the U.S., which has served as a powerful
pilot for the upcoming streaming launch.
As a result of these strategic efforts, both companies have
experienced above market advertising revenue growth. Univision's
advertising revenue through the first nine months of 2021 increased
by 32.6%, returning significantly beyond 2019 levels, while
Televisa's advertising revenue for the same period increased by 24%
year-over-year.
Univision's portfolio of television networks, consisting of
Univision, UniMás, Galavision and TUDN, delivered 62% of the
primetime viewing on Spanish-language television in the U.S. among
adults 18-49, up from 58% compared to 2020, and marked the highest
audience share since 2014. Meanwhile, Televisa's content
performance and audience delivery in Mexico was equally as impressive. The top 20
programs on broadcast television in Mexico were produced and transmitted by
Televisa. Televisa's top three programs during 2021 had audiences
between 63% and 73% higher than the top-rated program of its
closest competitor. Throughout the week, Televisa's audiences were
91% higher than those of the second largest broadcaster, while
audiences at its flagship network, Las
Estrellas, were 154% higher than those of its closest
competitor. Televisa transmitted eight out of the 10 soccer matches
with the highest audiences in Mexico during 2021.
Industry-Leading Innovation and Impact
TelevisaUnivision remains on track to launch its previously
announced unified global streaming service in 2022, which will
include both a free and a premium subscription tier. The service
will have the largest offering of original Spanish-language content
in the U.S. and Latin America,
including dramas, comedies, docuseries, game shows, reality shows,
variety programs, movies, musical and cultural events, children's
and educational programs, sports and special events, as well as
trusted news programming.
By tapping into Televisa's vast content vault, along with the
new Spanish-language originals in development and a wide range of
collaborations with some of the most notable established and
up-and-coming creators today, this offering will be the world's
first large-scale streaming service specifically developed for the
Spanish-speaking audience.
Creative partnerships with Eugenio
Derbez, Selena Gomez, Maria
Dueñas, Mario Vargas Llosa and
Santiago Limón were among the first announced and will fuel what
will be a truly compelling and first-of-its-kind offering.
Leadership
Wade Davis will lead
TelevisaUnivision as CEO. Alfonso de Angoitia will serve as
Executive Chairman of the TelevisaUnivision Board and Marcelo Claure will become Vice Chairman of the
Board.
The TelevisaUnivision Board will also be comprised of Emilio
Azcárraga, Bernardo Gómez, Michel
Combes, Gisel Ruiz, Oscar
Muñoz, Maria Cristina "MC" Gonzalez
Noguera, Eric Zinterhofer and
Jeff Sine. In addition, Televisa
retains the right to appoint two additional directors.
Content production and operations in Mexico will be led by Bernardo Gómez and
Alfonso de Angoitia, Co-Chief Executive Officers of
TelevisaUnivision Mexico, who also remain co-Chief Executive
Officers of Grupo Televisa. Grupo Televisa's news operations in
Mexico will become part of a new,
independent company dedicated to producing news for
TelevisaUnivision's networks in Mexico, and will be led by Emilio Azcárraga,
Executive Chairman of the Grupo Televisa Board of Directors.
The Company's new investors include SoftBank Latin America Fund,
Google and The Raine Group.
Advisors
For Univision: Guggenheim Securities and J.P. Morgan acted as
financial advisors; Paul, Weiss, Rifkind, Wharton & Garrison
LLP and Sidley Austin LLP served as legal counsel; and Covington
& Burling LLP served as regulatory counsel.
For Televisa: Allen & Company acted as financial advisor;
Wachtell, Lipton, Rosen & Katz, and Mijares, Angoitia, Cortés y
Fuentes, S.C. served as legal
counsel; and Pillsbury Winthrop Shaw Pittman LLP served as
regulatory counsel. LionTree Advisors LLC rendered a fairness
opinion to the Board of Directors of Televisa.
Cleary Gottlieb Steen &
Hamilton LLP served as legal counsel to the SoftBank Latin America
Fund.
Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to
The Raine Group.
About TelevisaUnivision
As the leading Spanish-language media and content company in
the world, TelevisaUnivision features the largest library of owned
content and industry-leading production capabilities that power its
streaming, digital and linear television offerings, as well as its
radio platforms.
The Company's media portfolio includes the top-rated
broadcast networks Univision and UniMás in the U.S. and
Las Estrellas and Canal 5 in
Mexico. TelevisaUnivision is home
to 36 Spanish-language cable networks, including Galavisión and
TUDN, the No. 1 Spanish-language sports network in the U.S. and
Mexico.
With the most compelling portfolio of Spanish-language sports
rights in the world, TelevisaUnivision has solidified its position
as the Home of Soccer. TelevisaUnivision also owns and
manages 59 television stations across the U.S. and four
broadcast channels in Mexico
affiliated with 222 television stations, Videocine studio, and
Uforia, the Home of Latin Music, which encompasses 57 owned or
operated U.S. radio stations, a live event series and a robust
digital audio footprint.
TelevisaUnivision is home to premium streaming services
PrendeTV and Blim TV, which altogether host over 40,000 hours of
high-quality, original Spanish-language programming from
distinguished producers and top talent. The Company's prominent
digital assets include Univision.com, Univision NOW, and several
top-rated digital apps. For more information,
visit televisaunivision.com.
About Televisa
Televisa is a major telecommunications corporation which owns
and operates one of the most significant cable companies as well as
a leading direct-to-home satellite pay television system in
Mexico. Televisa's cable business
offers integrated services, including video, high-speed data and
voice to residential and commercial customers as well as managed
services to domestic and international carriers. Televisa owns a
majority interest in Sky, a leading direct-to-home satellite pay
television system and broadband provider in Mexico, operating also in the Dominican Republic and Central America. Televisa holds a number of
concessions by the Mexican government that authorizes it to
broadcast programming over television stations for the signals of
Univision Holdings II, Inc. ("Univision"), and Televisa's cable and
DTH systems. In addition, Televisa is the largest shareholder of
TelevisaUnivision, the controlling company of Univision
Communications Inc., a leading media company producing, creating,
and distributing Spanish-speaking content through several broadcast
channels in Mexico, the US and
over 70 countries through television networks, cable operators and
over-the-top or "OTT" services. Televisa also has interests in
magazine publishing and distribution, professional sports and live
entertainment, and gaming.
Forward Looking Statements
This press release contains forward-looking statements based
on the current expectations of the Company and Grupo Televisa,
S.A.B. Words such as "believe", "anticipate", "plan", "expect",
"intend", "seek", "potential", "target", "estimate", "project",
"predict", "forecast", "guideline", "may", "should", "could",
"will" and similar words and expressions are intended to identify
forward-looking statements, but are not the exclusive means of
identifying these statements. These forward-looking statements
reflect our current views with respect to future events and are
based on assumptions and are subject to risks and uncertainties.
Also, these forward-looking statements present our estimates and
assumptions only as of the date of this press release. We undertake
no obligation to modify or revise any forward-looking statements to
reflect events or circumstances occurring after the date that the
forward-looking statement was made. Factors that could cause actual
results to differ materially from those expressed or implied by the
forward-looking statements include: risks and uncertainties related
to, and disruptions to the Company's business and operations caused
by, the business combination of Televisa and Univision and the
combination of the companies' content businesses, and impacts of
any changes in strategies following the consummation of such
business combination; our ability to successfully launch our
streaming service; risks and uncertainties as to the evolving and
uncertain nature of the COVID-19 pandemic and its impact on the
Company, the media industry, and the economy in general, including
interference with, or increased cost of, the Company's or its
partners' production and programming, changes in advertising
revenue, suspension of sporting and other live events, disruptions
to the Company's operations and the Company's response to the
COVID-19 virus related to facilities closings and increases in
expenses relating to precautionary measures at the Company's
facilities to protect the health and well-being of its employees
due to COVID-19; economic and political developments and
conditions; uncertainty in global financial markets; changes in
inflation rates; changes in interest rates; the impact of existing
laws and regulations, changes thereto or the imposition of new laws
and regulations affecting our businesses, activities and
investments; changes in customer demand; and effects of
competition, as well as other factors. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release.
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SOURCE Grupo Televisa, S.A.B.