Univision’s $4.8 Billion Acquisition of Content and Media Assets of Grupo Televisa

Paul, Weiss, Rifkind, Wharton & Garrison LLP; Sidley Austin LLP; Covington & Burling LLP and Galicia Abogados advised Univision, while Wachtell Lipton, Rosen & Katz; Mijares, Angoitia, Cortés y Fuentes, S.C. and Chevez, Ruiz, Zamarripa y Cia. advised Televisa in the transaction. Cleary Gottlieb Steen & Hamilton LLP represented SoftBank. Pillsbury Winthrop Shaw Pittman LLP represented The Raine Group.

Grupo Televisa, S.A.B. (“Televisa”), and Univision Holdings, Inc. (together with its wholly owned subsidiary, Univision Communications Inc., “Univision”), announced a definitive transaction agreement in which Televisa’s content and media assets will be combined with Univision to create the largest Spanish-language media company in the world: Televisa-Univision.

The combination brings together the two leading media businesses in the two largest Spanish-speaking markets in the world: Univision in the United States, the largest Spanish-language media market by value, and Televisa in Mexico, which is the most populous Spanish-language market in the world. The resulting business will hold the largest long-form library of content in the world, a powerful portfolio of IP and global sports rights, fueled by the most prolific Spanish-language production infrastructure.

Televisa will continue to capture the upside from the significant growth potential of the Company by remaining the largest shareholder in Televisa-Univision with an equity stake of approximately 45%. As a part of the agreement, Televisa will retain ownership of izzi Telecom, Sky, and other businesses, as well as the main real estate associated with the production facilities, the broadcasting licenses and transmission infrastructure in Mexico.

Televisa’s content assets will be contributed for approximately $4.8 billion. Under the terms of the agreement, Univision will pay $3.0 billion in cash, $750 million in Univision common equity and $750 million in Series B preferred equity, with an annual dividend of 5.5%. The balance is derived from other commercial considerations. The combination will be financed through $1.0 billion of new Series C preferred equity investment led by the SoftBank Latin American Fund (“SoftBank”), along with current Univision investor ForgeLight LLC, with participation from Google and The Raine Group; and $2.1 billion of debt commitments arranged by J.P. Morgan.

Guggenheim Securities and J.P. Morgan are acting as financial advisors to Univision. Allen & Company is acting as financial advisor to Televisa.

Wachtell, Lipton, Rosen & Katz advised Televisa S.A.B. de C.V. with Joshua R. Cammaker, Mark A. Stagliano, Ilene Knable Gotts, Adam Shapiro, Eric M. Rosof, T. Eiko Stange, Selwyn B. Goldberg, Helen A. Diagama, Fabiola Urdaneta, Emily E. Samra, John H. Bailey, Nicole D. Sharer and Liam N. Murphy.

Pillsbury Winthrop Shaw Pittman advised Televisa S.A.B. de C.V.  with Scott Flick, Strephan E. Becker, Lauren Lynch Flick, Jessica Nyman and Simone A. Wood.

In Mexico, Mijares, Angoitia, Cortés y Fuentes advised Televisa S.A.B. de C.V. with Ricardo Maldonado Yáñez, Francisco Fuentes Ostos, Carlos Ernesto Orcí Berea, Enrique Ramírez,  Alejandro Díaz Morales, Adriana Morales, Francisco Glennie, Pedro García Ampudia, Victoria Diktiar, Claudia Paola Gutiérrez Zamudio, Iván Serralde Loyzaga, Mariana Ávila, Miguel Ángel Couttolenc, Leopoldo Bernal Rangel and Jimena Domínguez.

Chevez, Ruiz, Zamarripa y Cia., S.C. also advised Televisa S.A.B. de C.V. in Mexico.

The Paul, Weiss team advising Univision included M&A partners Justin Rosenberg (Picture) and Taurie Zeitzer, and counsel Richard Quay; intellectual property partner Charles Googe; securities partner Tracey Zaccone and counsel David Sobel; financing partner Brian Kim and counsel Soo-ah Nah; tax partner Brad Okun; real estate partner Peter Fisch; executive compensation partner Lawrence Witdorchic; litigation partners Andrew Ehrlich and Lynn Bayard; antitrust counsel Marta Kelly and Yuni Sobel; and environmental counsel William O’Brien.

The Sidley team was led by Kelly Dybala (Global Finance), David Ni (Capital Markets), and Johnny Skumpija (Capital Markets), and included Adam Nelson (Global Finance) and John Stribling (Capital Markets).

Covington & Burling advised Univision with James O’Connell, Matthew S. DelNero, Miranda Cole, Kristin Shaffer, Jonathan Wakely, Hannah Lepow, Alison Wall and Jacob Crump. Abogada Irina Danescu.

In Mexico, Galicia Abogados, S.C. advised Univision with  Ignacio Pesqueira Taunton, Héctor Ramón Kuri Quijano, Carlos Chávez, Federico Scheffler K., Rodrigo Zamora Etcharren, Maurice Berkman, Nadia González Elizondo,  Fernanda Luna Tavares, Alessandra Gutiérrez V., Diego Valadez O., Mario Leal, Ximena Armengol, Marianela Romero, Sebastián Ayza Concha, Irma Ross, Ana María Castro Dosal, Gabriel Jiménez Maciel, Santiago Cervantes and María de los Ángeles Padilla Zubiría.

Cleary Gottlieb represented SoftBank Group International with partners Francesca Odell and Chantal Kordula and associates Jessica Batlle and Sofia Falzoni. Partner Brian Byrne, counsel Chase Kaniecki and associate Isabel Tuz advised on antitrust and regulatory matters. Partner Meyer Fedida provided tax advice.

In Mexico, Galicia Abogados advised Softbank with Manuel Galicia Romero, Ricardo García Giorgana, Cecilia Azar Manzur, Juan Carlos Burgos Carbajal, Julio Hernández S., Adriana Peralta Suchil, Marcela Gómez Morin Cuevas, Paola Cravioto, Ana Luisa Ibáñez, Christopher J. Dillon Z., Alessandra Gutiérrez V., Diego Valadez O. and Mario Leal.

Pillsbury Winthrop Shaw Pittman advised The Raine Group witha team including Stephen B. Amdur, Jarrod D. Murphy,  Nora E. Burk, Veonica T. Nunn and Juan Pablo Cordon.

Involved fees earner: Jessica Batlle – Cleary Gottlieb Steen & Hamilton; Brian Byrne – Cleary Gottlieb Steen & Hamilton; Sofia Falzoni – Cleary Gottlieb Steen & Hamilton; Meyer Fedida – Cleary Gottlieb Steen & Hamilton; Chase Kaniecki – Cleary Gottlieb Steen & Hamilton; Chantal Kordula – Cleary Gottlieb Steen & Hamilton; Francesca Odell – Cleary Gottlieb Steen & Hamilton; Isabel Tuz – Cleary Gottlieb Steen & Hamilton; Miranda Cole – Covington & Burling LLP; Jacob Crump – Covington & Burling LLP; Matthew DelNero – Covington & Burling LLP; Hannah Lepow – Covington & Burling LLP; James O’Connell – Covington & Burling LLP; Kristin Shaffer – Covington & Burling LLP; Jonathan Wakely – Covington & Burling LLP; Alison Wall – Covington & Burling LLP; Ximena Armengol – Galicia Abogados, S.C; Sebastián Ayza Concha – Galicia Abogados, S.C; Cecilia Azar Manzur – Galicia Abogados, S.C; Maurice Berkman – Galicia Abogados, S.C; Juan Carlos Burgos Carbajal – Galicia Abogados, S.C; Carlos Chávez – Galicia Abogados, S.C; Paola Cravioto G. – Galicia Abogados, S.C; María de los Ángeles Padilla Zubiría – Galicia Abogados, S.C; Manuel Galicia – Galicia Abogados, S.C; Nadia González Elizondo – Galicia Abogados, S.C; Alessandra Gutiérrez – Galicia Abogados, S.C; Julio Hernández – Galicia Abogados, S.C; Ana Luisa Ibáñez C. – Galicia Abogados, S.C; Héctor Kuri – Galicia Abogados, S.C; Mario Leal – Galicia Abogados, S.C; Fernanda Luna – Galicia Abogados, S.C; Marcela Gómez Morin – Galicia Abogados, S.C; Ignacio Pesqueira T. – Galicia Abogados, S.C; Ricardo García Giorgana – Galicia Abogados, S.C; Marianela Romero – Galicia Abogados, S.C; Irma Ross Navarro – Galicia Abogados, S.C; Federico Scheffler – Galicia Abogados, S.C; Diego Valadez – Galicia Abogados, S.C; Rodrigo Zamora – Galicia Abogados, S.C; Mariana Ávila – Mijares, Angoitia, Cortés y Fuentes, S.C.; Alejandro Díaz Morales – Mijares, Angoitia, Cortés y Fuentes, S.C.; Francisco Fuentes-Ostos – Mijares, Angoitia, Cortés y Fuentes, S.C.; Pedro García Ampudia – Mijares, Angoitia, Cortés y Fuentes, S.C.; Francisco Glennie Quiròs – Mijares, Angoitia, Cortés y Fuentes, S.C.; Claudia Gutiérrez – Mijares, Angoitia, Cortés y Fuentes, S.C.; Ricardo Maldonado-Yáñez – Mijares, Angoitia, Cortés y Fuentes, S.C.; Adriana Morales – Mijares, Angoitia, Cortés y Fuentes, S.C.; Carlos Orcí Berea – Mijares, Angoitia, Cortés y Fuentes, S.C.; Iván Serralde – Mijares, Angoitia, Cortés y Fuentes, S.C.; Lynn Bayard – Paul Weiss Rifkind Wharton & Garrison; Andrew Ehrlich – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Charles Googe – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; Brian Kim – Paul Weiss Rifkind Wharton & Garrison; Soo-ah Nah – Paul Weiss Rifkind Wharton & Garrison; William O’Brien – Paul Weiss Rifkind Wharton & Garrison; Brad Okun – Paul Weiss Rifkind Wharton & Garrison; Richard Quay – Paul Weiss Rifkind Wharton & Garrison; Justin Rosenberg – Paul Weiss Rifkind Wharton & Garrison; David Sobel – Paul Weiss Rifkind Wharton & Garrison; Yuni Sobel – Paul Weiss Rifkind Wharton & Garrison; Lawrence Witdorchic – Paul Weiss Rifkind Wharton & Garrison; Tracey Zaccone – Paul Weiss Rifkind Wharton & Garrison; Taurie Zeitzer – Paul Weiss Rifkind Wharton & Garrison; Stephen Amdur – Pillsbury Winthrop Shaw Pittman LLP; Strephan Becker – Pillsbury Winthrop Shaw Pittman LLP; Nora Burke – Pillsbury Winthrop Shaw Pittman LLP; Juan Pablo Cordon – Pillsbury Winthrop Shaw Pittman LLP; Scott Flick – Pillsbury Winthrop Shaw Pittman LLP; Lauren Lynch Flick – Pillsbury Winthrop Shaw Pittman LLP; Jarrod Murphy – Pillsbury Winthrop Shaw Pittman LLP; Veonica Nunn – Pillsbury Winthrop Shaw Pittman LLP; Jessica Nyman – Pillsbury Winthrop Shaw Pittman LLP; Simone Wood – Pillsbury Winthrop Shaw Pittman LLP; Enrique Ramírez – Ramírez, Gutiérrez-Azpe, Rodríguez-Rivero y Hurtado; Kelly Dybala – Sidley Austin LLP; Adam Nelson – Sidley Austin LLP; David Ni – Sidley Austin LLP; Johnny Skumpija – Sidley Austin LLP; John Stribling – Sidley Austin LLP; John Bailey – Wachtell, Lipton, Rosen & Katz; Joshua Cammaker – Wachtell, Lipton, Rosen & Katz; Helen Diagama – Wachtell, Lipton, Rosen & Katz; Selwyn Goldberg – Wachtell, Lipton, Rosen & Katz; Ilene Knable Gotts – Wachtell, Lipton, Rosen & Katz; Liam Murphy – Wachtell, Lipton, Rosen & Katz; Eric Rosof – Wachtell, Lipton, Rosen & Katz; Emily Samra – Wachtell, Lipton, Rosen & Katz; Adam Shapiro – Wachtell, Lipton, Rosen & Katz; Nicole Sharer – Wachtell, Lipton, Rosen & Katz; Mark Stagliano – Wachtell, Lipton, Rosen & Katz; Eiko Stange – Wachtell, Lipton, Rosen & Katz; Fabiola Urdaneta – Wachtell, Lipton, Rosen & Katz;

Law Firms: Cleary Gottlieb Steen & Hamilton; Covington & Burling LLP; Galicia Abogados, S.C; Mijares, Angoitia, Cortés y Fuentes, S.C.; Paul Weiss Rifkind Wharton & Garrison; Pillsbury Winthrop Shaw Pittman LLP; Ramírez, Gutiérrez-Azpe, Rodríguez-Rivero y Hurtado; Sidley Austin LLP; Wachtell, Lipton, Rosen & Katz;

Clients: Grupo Televisa SAB; SoftBank Group Corporation; The Raine Group; Univision Communications Inc.;

Author: Martina Bellini