In a sign that Univision and Televisa have patched
over their longstanding disagreements, the Mexican media giant has agreed to
invest $1.2 billion in Univision and expand its long-term programming agreement
with the largest U.S. Hispanic broadcaster.
Televisa had filed a lawsuit in 2006 to attempt to
get out of its programming agreement with Univision, which is heavily dependent
on Televisa's telenovelas for its primetime ratings.
Under the terms of the binding agreement, Televisa
will invest $1.2 billion and contribute its 50% stake in the TuTv Hispanic
channels it jointly owns with Univision for a 5% equity stake.
As part of the deal, Univision will have exclusive
U.S. Spanish language rights to Televisa's programming and be able to use that
programming for both its networks and online efforts.
Besides the expanded digital rights, the new
programming agreement is also extended beyond 2017 to 2020.
The deal significantly strengthens Univision's
programming position both for its popular TV networks and its growing digital
platforms and provides Televisa with significantly higher royalty payments for
its programming.
"We are extremely pleased to have reached this important agreement,
which fully aligns the interests of Univision and Televisa for the long term as
both companies work to further serve the substantial growth opportunities in
Spanish-language media in the U.S.," said Haim Saban, chairman of Univision
Communications, in a prepared statement.
