Televisa to Take Stake in Univision

Apparently, Mexican media giant Grupo Televisa SAB will pay $1.2 billion to help recapitalize Univision Communications, Inc. and gain a minority stake in return, ending years of acrimony between the world's two biggest Spanish-language broadcasters.

Televisa will pay $130 million for a 5% stake. The rest would be convertible debt equivalent to 30% of Univision shares, with a 15-year maturity. Televisa would also have the right to buy an additional 5% of Univision at market prices in five years time. All told, the Mexican broadcaster would have the rights to buy up to 40% of Los Angeles-based Univision, if all its debentures are converted. US law, however, currently prohibits a foreign broadcaster from owning more than 25% of U.S. broadcasters.