Categorized | TV & Radio

Televisa becomes part owner of Univision

Televisa is finally getting what it has wanted for years – a piece of Univision. Grupo Televisa will be investing $1.2 billion in Univision. While the WSJ reports Televisa’s cash will help “recapitalize” Univision, Mexico’s El Universal describes it as a “rescue” of the U.S. company.

Under the terms of the deal, Televisa will pay $130 million for a 5% stake in the company, and the rest would be convertible debt equivalent to 30% of Univision shares. It would also have the right to buy an additional 5% of Univision at market prices in 5 years. When you add it all up, Televisa could end up owning up to 40% of the company.

As part of the deal, Televisa will also extend its content licensing agreement with Univision from the current 2017 to 2025. The Mexican broadcaster will get an increase in royalties – Univision will pay an extra $48 million in the first year. But in exchange, Univision will be allowed to broadcast Televisa programming on the internet and other digital platforms.

The deal puts an end to the legal battles between both companies. Televisa and Univision last year settled a program-sharing and royalties suit out of court. In July of 2009, a judge ruled Televisa couldn’t plug its own shows online in the U.S. and neither could Univision. Televisa had vowed to appeal that ruling.

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- who has written 4807 posts on Media Moves.

I'm an Emmy award-winning journalist, who's worked as an on-air reporter in Spanish and English-language television news. I've worked for Univision, Telemundo, CNN en Español and Los Angeles Fox and UPN stations before diving into a convergence model at the San Jose Mercury News. I have also held management positions in the online digital sphere - first as Managing Editor of IntersectionsSouthLA.org, followed by a role as the West Coast Web editor for impreMedia. I was president of the National Association of Hispanic Journalists from 2004 to 2006. I am also a freelance writer, reporter and producer. I founded Media Moves in June of 2007.

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Veronica Villafañe, Editor and Publisher

Veronica Villafane

I'm an Emmy award-winning journalist, who's worked as an on-air reporter, anchor, writer and producer for Spanish and English-language television, including Univision, Telemundo, CNN en Español, Fox 11 News in Los Angeles and the San Jose Mercury News, later becoming a digital media manager. I write about Hispanic media and entertainment as a regular contributor to Forbes and also freelance as an editor, reporter and producer for other media outlets. I'm a former president of the National Association of Hispanic Journalists, inducted into the Hall of Fame in August of 2016.
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