Grupo Televisa, S.A.B and Univision Holdings II, Inc. on Feb. 1 announced the completion of the transaction between Televisa's media content and production assets and Univision.
The new company, which is named TelevisaUnivision, Inc., creates the world's leading Spanish-language media and content company. TelevisaUnivision will produce and deliver premium content for its own platforms and for others, while also providing innovative solutions for advertisers and distributors globally.
"The combination of content assets from Televisa and Univision, the two leading media companies from the two largest Spanish-speaking markets in the world, has created a company with tremendous potential," said Alfonso de Angoitia, Executive Chairman of the TelevisaUnivision board of directors. "With our attractive financial profile and history of innovation, TelevisaUnivision is ready to revolutionize the industry by delivering the most comprehensive Spanish-language content offering to audiences around the world."
The merger parties say the transaction brings together the most compelling content and intellectual property with the most comprehensive media platforms in the two largest Spanish speaking markets in the world. Televisa's four broadcast channels, 27 pay-TV channels, Videocine movie studio, Blim TV subscription video-on-demand service, and the Televisa trademark, will be combined with Univision's assets in the U.S., which include the Univision and UniMás broadcast networks, nine Spanish-language cable networks, 59 television stations and 57 radio stations in major U.S. Hispanic markets, and the PrendeTV AVOD platform.
"The close of our transaction marks a historic moment for our company and our industry," said TelevisaUnivision CEO Wade Davis. "We are combining two iconic and market-leading companies that have a rich, shared history and an incredible portfolio of assets. This combination will create a business without comparison in the global media landscape. Over the past year both companies have transformed themselves, reaching levels of financial performance and audience resonance that has not been seen for years. The power and momentum of the transformed core business is truly unique and will be a springboard for the upcoming launch of the preeminent Spanish-language streaming service. The new trajectory of our company is supported by our new ownership group, which is well positioned to amplify the efforts of one of the best leadership teams in the world."
Together, TelevisaUnivision owns the largest library of Spanish-language content and intellectual property in the world, and the most prolific long-form Spanish-language content engine in the industry. As a result of the combination, TelevisaUnivision reaches over 60% of the respective TV audiences in both the U.S. and Mexico. Across television, digital, streaming, and audio, the Company reaches over 100 million Spanish speakers every day, holding leading positions in both markets.
Since announcing the transaction on April 13, 2021, Univision and Televisa says that each organization has transformed their core businesses in anticipation of the integration and are delivering the highest levels of financial and audience growth either company has experienced in years. According to a press release, "The long-standing partnership between the two businesses has allowed for improved content and business coordination that will accelerate the integration."
Notably, the TelevisaUnivision transformation also included the development of a massive pipeline of original content for the upcoming global streaming launch, investing in new advertising products in both markets, revamping the programming strategy and executing new distribution partnerships, as well as launching the PrendeTV AVOD service in the U.S., which has served as a powerful pilot for the upcoming streaming launch.
As a result of these strategic efforts, both companies said they have experienced above market advertising revenue growth. Univision's advertising revenue through the first nine months of 2021 increased by 32.6%, returning significantly beyond 2019 levels, while Televisa's advertising revenue for the same period increased by 24% year-over-year.
The new company's new investors include SoftBank Latin America Fund, Google and The Raine Group.