Univision Holdings formally prepared to go public by filing a registration statement with the Securities and Exchange Commission.
The statement didn’t specify how many shares Univision planned to sell, or the price, but analysts have said an initial public offering could raise $1 billion and value the leading Spanish-language media company at $20 billion.
Mogul Haim Saban led the acquisition of Univision in 2007 and paid $13.7 billion, including debt for the company. Saban’s partners included TPG Capital, Providence Equity Partners and Madison Dearborn.
Univision also said it reached an agreement with Grupo Televisa, a key supplier of programming that will strengthen the companies’ relationship.
Under the agreement Televisa will hold 22% of the voting rights of Univision stock and will have the right to designate a minimum number of directors to Univision’s board.
A new Program Licensing Agreement would stretch to at least 2030 from its current expiration date of 2020. The royalty rate will be reduced from 11.91% to 11.84% effective January 2015-December 2017, and from 16.22% to 16.13% on Jan. 1 2018.
Televisa will continue to receive an incremental 2% in royalty payments on such media networks’ revenues above an increased revenue base of $1.66 billion, compared to the prior revenue base of $1.65 billion, the companies said. The royalty rate will again increase to 16.45% starting June 1, 2018 and for the remainder of the term, compared to the prior rate of 16.54%. With this second rate increase, Televisa will receive an incremental 2% in royalty payments above a reduced revenue base of $1.63 billion.
“These amendments to the [program license agreement] and the terms of our [memorandum of understanding] underscore the strength of Univision’s relationship with Televisa and the significant and unique benefits of our mutually beneficial partnership,” Univision CEO Randy Falco said in a statement. “By taking these steps and our pursuit of other related initiatives, Univision is in a stronger competitive position going forward. Televisa is the best Spanish-language content producer in the world, and we are pleased to continue to have its support as we enter the next exciting chapter of Univision’s history.”
“With these transactions we strengthen our relationship further and reiterate our full commitment to Univision and its future,” said Alfonso de Angoitia, executive VP of Grupo Televisa.
Univision last year had takeover talks with Time Warner and CBS, according to reports, but no deals were proposed.
The managers of the Univision IPO are Morgan Stanley, Goldman Sachs & Co. and Deutsche Bank Securities.
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