The Plenary of the Federal Telecommunications Institute (IFT) approved the merger between Univisión and Televisa to create a new firm that intends to be the largest Spanish-speaking media group in the world.

The regulatory body explained that the merger of the companies does not foresee anti-competitive effects derived from the operation in these coinciding activities of Univision Holdings and Grupo Televisa, largely due to to the marginal participation of Univision in Mexico.

The authorization granted by the IFT does not prejudge the authorizations that the parties must obtain from other instances.

The Institute specified that Televisa will retain ownership of the telecommunications and broadcasting concessions in Mexico, under the protection of which it operates its broadcast television and cable and satellite distribution businesses of audiovisual content, including channels that are programmed by Sky and Izz ”and the advertising that they have the right to commercialize.

In addition, it will maintain your print publishing, telephony, internet, and telecommunications services businesses related, as well as the operation of soccer teams, stadiums and games of chance.

Televisa and Univisión reported in April the merger of their portfolios that will cover more than 300 thousand hours of programming, coupled with Televisa’s production capacity, which in 2020 produced more than 86 thousand hours of entertainment, sports, news and special events content .

Grupo Televisa will receive a value of 4.8 billion dollars and will become the largest shareholder in the new Televisa-Univision, acquiring 45 percent of its shares.

To support digital transformation, SoftBank, Google and The Raine Group, one of the investment banks with the greatest expertise in technology issues, join together as strategic partners.

These three entities and the investment fund ForgeLight, led by Wade Davis, will contribute one billion dollars to the operation and join the group of current shareholders made up of ForgeLight itself, Searchlight, Liberty Global and Grupo Televisa.

It is estimated that Televisa-Univision will be a company that achieves estimated joint sales in the order of 4 billion dollars and an EBITDA of 1.6 billion dollars, with a margin greater than 40 percent due to synergies derived from the integration.

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