Mediapro Sells Three Spanish-Language Channels in the U.S.
MADRID -- Hemisphere Media has bought three of Spanish media giant Mediapro's Spanish-language U.S.-based cable channels, the Spanish company announced Thursday.
Media World, the American branch of the Mediapro Group, sold three of its pay channels to Hemisphere for $102 million in a deal that Mediapro said will open future synergies between the two companies.
The deal includes the channels Pasiones, with some 11 million subscribers and dedicated to telenovelas and series; Centroamerica TV, with 3.3 million subscribers; and TV Dominicana with 2.2 million subscribers. The latter two are general interest channels.
According to U.S. Hispanic TV/cable networks and content platform Hemisphere, these assets present significant long-range opportunities and are expected to have generated approximately $12.2 million of EBITDA in 2013, resulting in an effective purchase price multiple of 8.4 times.
"These networks target valuable, growing and underserved segments of the Hispanic audience. With this acquisition, Hemisphere will own five leading U.S. Hispanic cable networks, two Latin American cable networks and WAPA-TV, the No. 1 network in Puerto Rico, expanding our leadership position in Hispanic television," said Alan Sokol, CEO of Hemisphere. "We believe that we can add significant value to these channels through improved programming, marketing and distribution efforts, and these networks will expand our commercial inventory and cross-selling opportunities in the U.S. and augment our Latin American offerings."
According to a press statement, Media World will continue producing the content for the channels and managing the technical services. With headquarters in Miami and HD production studios in Miami and Los Angeles, Mediapro boasts a staff of 200 employees and 2013 revenues of $100 million.