TV Settles Dispute With Univision; Pays $1.2 Billion
The Wall Street Journal reported that Grupo Televisa SA (NYSE: TV) plans to settle a dispute with Univision Communications Inc by paying $1.2 billion of cash and stock for 35% of Univision.
People close to the matter told the newspaper that Tevelisa would be paying $130 million in cash for 5% of Los Angeles-based Univision, with the remaining being paid in 15-year convertible debt.
According to the Journal, TV would also possess the right to purchase another 5% of Univision in five years at market prices. According to US law, a foreign broadcaster is barred from owning more than 25% of a US broadcaster. In 2006, TV had proposed to purchase Univision but could not beat a private-equity group.
Shares of TV lost 0.26% to close at $18.91 yesterday.
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