Televisa, Univision united till 2025

Mexico’s Grupo Televisa has completed its billion-dollar investment in US Hispanic broadcaster Univision Communications, and expanded the pair’s programme license agreement.

Televisa first announced it was to invest US$1.2bn in Univision in October 2009 to help refinance Univision’s debts, which were rumoured to stretch into the billions.

Following the completion of the investment, the pair’s current long-term US programme license agreement, which sees Univision air Televisa content on its digital and traditional platforms in the US, has been extended to 2025. Should Televisa decide to sell, the deal lasts seven and a half years after that point.

The pair has also signed a programme license agreement for Mexico, with Televisa now exclusively broadcasting Univision content in the territory. Three Televisa directors also join the Univision board, which grows to 20 members.

The new agreements come some 18 months after Univision won a long-running legal dispute that saw a US judge allow it to air Televisa-owned telenovelas on its digital platforms.

“We are very pleased to have completed this value-creating transaction, which will significantly enhance Univision’s world-class multi-platform offerings for viewers and clients while considerably strengthening the company’s balance sheet,” said Joe Uva, president and CEO of Univision.

“The refinancing of Univision’s debt was completed on terms that exceeded our expectations, reflecting the financial community’s confidence in our business and its future. We look forward to leveraging the full potential of this strategic partnership going forward to better serve our audience and build on our strong foundation to achieve additional growth.”

Grupo Televisa CEO and chairman Emilio Azcárraga Jean said: “With a rapidly growing Hispanic population and increasing success of our content in the United States, this is a very appropriate moment in time to expand our content offerings and extend our agreement with Univision.”