Mexico’s Televisa said on Monday it will acquire a 5 percent stake in rival U.S. broadcaster Univision for $1.2 billion, as it takes a bet on the lucrative Hispanic television market in the United States.
The acquisition will include a 5 percent stake and debt that can be converted into a stake of as much as 30 percent of Univision, the Mexico City-based company said last night on its program “Newscast with Joaquin Lopez Doriga.” Televisa said it also has an option to buy an additional 5 percent holding in the U.S. broadcaster after three years.
Privately-held Univision was not immediately available for comment.
Both companies want a bigger slice of the lucrative Hispanic television market in the United States. Hispanics make up about 15 percent of the U.S. population and that could grow to 25 percent by 2050, according to census forecasts.
Televisa’s U.S. expansion was long hampered by the legal battle with Univision as the Mexican company tried to get more money from its shows aired in the United States, while the U.S. company tried to keep the programs that generated the bulk of its prime-time ratings.