Two Spanish-language networks in North America are joining forces to respond to the rise of Netflix, Amazon Prime Video, Disney+ or Apple TV platforms.
This is the birth of the new streaming media Goliath. Televisa of Mexico and Univision of the United States announced on Tuesday, April 13 that the merger of the two companies will create the world’s largest media group in Spanish. Goal: Launch a video-on-demand platform for 600 million Spanish-speaking users to compete with Netflix, which is investing heavily in a high-potential Latin market.
The merger has not yet been approved by Mexican and U.S. regulatory agencies. But the engagement is sealed. Marriage should be officially confirmed before the end of the year. With 31 channels (four free TV channels and 27 pay-per-view channels) and its streaming platform Blim, the Mexican group has become the world’s leading producer of audiovisual content in the Cervantes language.
Its American counterparts (60 local TV stations and digital service Prende TV) are leaders in the American Latino community (61 million people). Their union covers free broadcasting or pay, television or digital broadcasting. The new company Televisa-Univision will have the world’s largest Spanish-speaking catalog (300,000 hours of programming time), and is ultimately expected to have annual sales of more than 4 billion U.S. dollars (3.3 billion euros).
The agreement stipulates “Televisa will receive US$4.8 billion and become the major shareholder of the new company, owning 45% of the shares.”, Designating a press release to be issued on Tuesday. Univision agreed to pay this sum in cash and shares to Televisa, whose dowry represents billions of dollars in sports rights and original works.
In addition, the wedding was sponsored by Internet giant Google, Japanese technology fund SoftBank, US investment bank Rennes Group and investment fund Forgelight (shareholder of Univision), which plans to invest a total of US$1 billion.
Enough to create a new heavyweight in the streaming market, which is dominated by Netflix, Amazon Prime Video and Disney+. By 2020, they will have 200, 150 and 94 million subscribers globally. According to Global X ETF data, under the containment caused by the pandemic, the industry accumulated $72 billion in revenue last year. Netflix is a pioneer privilege, accounting for the largest share of $25 billion in revenue, a 24% increase in a year.
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