Univisión Chairman Haim Saban and Televisa Executive Vice President Alfonso de Angoitía led the negotiations
Univision Communications, Inc. and Grupo Televisa, S.A.B. announced an agreement in which Televisa will make a substantial investment in Univisión, and the long-term Program License Agreement (PLA) between the two companies will be expanded and extended. As a result, Televisa and Univisión will enhance their respective business potential and value creation opportunities. The PLA will be extended from its current 2017 expiration date to 2020, and upon satisfying certain conditions to at least 2025.Under the terms of the binding agreement, Televisa will invest US$1.2 billion in Univisión, and contribute its 50-percent interest in TuTV, for a five-percent equity stake and debentures convertible into an additional 30-percent equity stake of Univisión in the future, subject to existing laws and regulations, and have the option to acquire an additional five-percent equity stake in Univisión. Univisión will issue new shares and convertible debentures to Televisa. In connection with the investment, three Televisa representatives will join the Univisión Board of Directors, which will increase to 20 members. Under the newly amended PLA, in addition to an expanded suite of exclusive U.S. Spanish-language broadcast rights, Univisión will now have exclusive U.S. Spanish-language digital rights to Televisa audiovisual programming. We are extremely pleased to have reached this important agreement, which fully aligns the interests of Univisión and Televisa for the long-term as both companies work to further serve the substantial growth opportunities in Spanish-language media in the United States, said Haim Saban, Chairman of Univision Communications, on behalf of Univisión owner Broadcasting Media Partners, Inc.This transaction with Univisión provides Televisa with a highly attractive strategic platform for the continued distribution of our content in the U.S. marketplace, our most important media marketplace outside of Mexico, said Emilio Azcárraga Jean, Chairman, President and Chief Executive Officer of Grupo Televisa.
