Televisa, Univision Ink Billion-Dollar Extension Through 2025
Two Televisa execs, CEO Emilio Azcarraga Jean and evp Alfonso de Angoitia, land seats on Univision's board of directors, as part of the expanded content agreement.
MEXICO CITY -- Mexico's Televisa and its stateside partner Univision have closed a billion-dollar deal that extends their long-term program license agreement to 2025.
Additionally, the Spanish-language media titans said Monday that they have agreed to a PLA for Mexico, giving Televisa the rights to air Univision content. Televisa also broadcasts programming provided by Univision rival Telemundo.
After numerous years of legal wrangling over royalty payments and Internet rights, the two companies unveiled an agreement in October that allows Televisa to up its stake in Univision to as much as 40% over several years, however, U.S. media-ownership rules limit a foreign company to own as much as 25% in a U.S. broadcaster.
Televisa paid $130 million to buy a 5% stake in Univison and has the option to raise its share to 10% after three years. Moreover, Televisa can hold debt that is convertible into an additional 30% stake.
Under the expanded content arrangement, Televisa scored added license-fee payments estimated at about $50 million in the first year. Two key Televisa executives also landed seats on Univision's board of directors: CEO Emilio Azcarraga Jean and executive vice president Alfonso de Angoitia.
Univision, in turn, received debt relief, rights to digital content in the U.S., and a crucial extension of the PLA pact; Univision has long leaned on Televisa as a content supplier for the bulk of its primetime programming.
"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," said Univision CEO Joe Uva.