Mexican pay-TV and broadcasting behemoth, Grupo Televisa S.A.B. TV and U.S. broadcaster, Univision Holdings Inc. have decided to extend their alliance to provide additional opportunities for next-generation Latinos in the U.S. media and technology fields in 2016.
The primarily motive of this agreement is to reinforce and amplify the companies’ endeavors to boost the careers of Latinos in media and technology sectors and to train potential media and high-tech industries leaders and professionals. Notably, the fresh deed will include an extensive variety of programs concerning education, mentorship and career advancement.
Notably, the agreement is supported by the National Hispanic Foundation for the Arts, the National Hispanic Media Coalition, and the National Association of Latino Independent Producers.
Keeping in mind the conflux of technology and media, the companies aim to promote STEM learning and development of skill among Hispanics from a young age via the extended partnership. This would aid them in achieving the technical skills they need to make a mark for themselves in the media industry.
Given the overall increasing influence of Hispanic Americans, the two companies consider it imperative for Latinos to play a pivotal role in influencing and contributing to the media industry in the U.S. Thus, by joining forces, the companies aim to empower the Latinos community and ensure recognition for Latinos across the U.S. media and technology sectors.
Interestingly, Televisa is likely to gain significantly from its ownership stake in Univision, which is the largest Spanish-language broadcaster in the U.S. In 2007, Univision was acquired by a consortium led by billionaire Haim Saban. Other investors in the group were Madison Dearborn Partners, Providence Equity Partners, TPG and THL Partners. In 2012, Televisa started investing in Univision and currently holds a 36% (after converting debt into equity) stake in the company.
This July, Univision announced the filing of a registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) valued at $100 million. The IPO is likely to take place in late 2015. However, industry sources opine that Univision’s IPO is set to cross the $1 billion mark, which will raise the company’s value to over $20 billion.
Moreover, the U.S. Hispanic TV market is highly lucrative and is growing at a remarkable pace. As per Univision’s filing to SEC, the U.S. Spanish-speaking audience totaled 57 million in 2014, and is projected to reach 77 million by 2030.
Meanwhile, last year, Univision’s owners held discussions with CBS Corp. CBS, Time Warner Inc. TWX and Viacom Inc. VIAB for the sale of the company. However, the initiatives failed to take shape.
Televisa currently carries a Zacks Rank #3 Hold).
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