The US Federal Communications Commission has granted approval for increased foreign investment in Univision in a move that is set to allow Mexican media company Televisa to raise its stake in the Spanish-language broadcaster.
The FCC has approved an increase in the authorised aggregate foreign ownership of Univision’s issued and outstanding shares of common stock from 25 per cent to 49 per cent. In the same ruling, the regulator authorised Televisa to hold up to 40 per cent of the voting interests and 49 per cent of the equity interests of Univision.
Televisa bought an equity stake in Univision, a major sports broadcaster in the US, in 2010. It currently holds 10 per cent equity and a 14.4-per-cent voting interest. The FCC ruling states that US entities must retain a 51 per cent stake in Univision.
Current US law forbids foreign companies from owning more than 25 per cent of a US-based media company that owns radio or television stations. The Los Angeles Times newspaper said the FCC waiver – which applies only to Univision and Televisa – is expected to clear a path for Univision’s long-planned initial public offering to provide its private equity owners with an exit.
In a joint statement, Univision and Televisa said: “The Commission concluded that permitting increased foreign investment in Univision would serve the public interest in diversity and competition in the media sector without any countervailing national security, law enforcement or trade policy concerns.
“The FCC’s decision will enable Univision to accommodate increased foreign investment that may result from share purchases by the public in an IPO while enabling Televisa… to increase its current equity stake in the company.”
Univision’s sports rights portfolio includes exclusive Spanish-language rights in the US for all national team competitions operated by Uefa, football’s European governing body. Univision also broadcast the Copa América Centenario, which was held in the United States last year.