Spanish-language media companies Grupo Televisa, headquartered in Mexico City, and New York-based Univision Holdings are merging their entertainment divisions, the companies announced Tuesday.
Televisa’s four broadcast channels, 27 pay-TV networks channels and stations, a movie studio and a subscription-based video on demand service will be part of the new organization, Televisa-Univision.
Univision assets included in the deal are the Univision and UniMás broadcast networks, nine Spanish-language cable networks, 61 television stations and 58 radio stations in major U.S. Hispanic markets and Puerto Rico, and Univision’s video on demand streaming service, the companies said.
As part of the deal, Univision is paying Televisa $4.8 billion — including $3 billion in cash and $1.5 billion in Univision equity. The balance will come from other commercial considerations.
After the merger is complete, Televisa-Univision will be the largest Spanish-language media company in the world, the Los Angeles Times noted. With approximately 45 percent of the new company’s equity, Televisa will become its largest shareholder.
To ensure that production of Televisa’s news content “remains in Mexican hands and is produced in Mexico,” the companies said, Televisa-Univision’s news content will be outsourced to a company owned by the family of Emilio Azcárraga, executive chairman of Televisa’s board of directors.
However, Televisa-Univision will own all assets, IP and library related to Televisa’s news division.
The directors of both companies have already approved the deal, and executives expect it to be finalized this year, after shareholder and regulatory approvals.
Univision has played a significant role in U.S. politics in addition to serving the nation’s large Spanish-speaking population.
During his failed reelection campaign, former President Trump called Univision “a Leftist Propaganda Machine.” But his feud with the network and anchor Jorge Ramos began during his first presidential campaign.
Univision decided against broadcasting Trump’s Miss Universe pageants in response to Trump’s controversial claims about Mexican immigrants. In return, Trump said the network had bowed to pressure from the Mexican government and banned Univision employees from the Trump National Doral hotel in Miami.
Trump also had Ramos kicked out of a press conference when the journalist rose to ask a question when Trump called on another reporter.