Latin America. Investment firms Searchlight Capital Partners and ForgeLight reached an agreement to acquire a majority stake in Univision from all shareholders other than Grupo Televisa.
Televisa has chosen to retain its approximate 36 percent stake in Univision's fully diluted share capital on a converted basis. Televisa's program license agreement with Univision will remain in effect and will not expire unless Televisa voluntarily sells a substantial portion of its ownership interest, at which point the agreement would remain in effect for another 7.5 years. The agreement, which is one of Univision's most strategic assets, provides the company with exclusive access to the world's largest Spanish-language video library.
Under the terms of the acquisition, Searchlight and ForgeLight will purchase the remaining 64 percent of Univision's shareholders, led by an investment group that includes Madison Dearborn Partners, Providence Equity Partners, TPG, Thomas H. Lee Partners and Saban Capital Group ("The Sponsoring Group").
Searchlight and ForgeLight will partner closely with Televisa and Wade Davis, founder of ForgeLight, who will become Univision's CEO at the close of the transaction. The transaction, which is subject to customary closing conditions, including receipt of regulatory approvals, is expected to close later this year.
Televisa has been a key strategic partner for Univision for decades. This relationship provides Univision with exclusive U.S. broadcast and digital rights (with limited exceptions) to all Televisa programming, including premium Spanish-language dramas, sports, comedies, reality series, entertainment interview programming, and feature films. Televisa will serve as an important partner for the new ownership and management team in the future.
The combination of Searchlight's experience as a long-term investor in the media and communications sectors, Davis' experience managing the growth and transformation of large-scale media companies, and Televisa's continued support as a leading producer of Spanish-language content creates the opportunity for Univision to enter a new era of growth and innovation.
Together, the new ownership group intends to leverage Univision's recent content and programming momentum to accelerate growth, expand its advertising product portfolio, substantially enhance its digital presence, and continue to use best-in-class Televisa content.
