Televisa Looks to Capitalize on Broadband Opportunity: Univision Transaction Remains on Pace

We are still bullish on Televisa's long-term prospects despite ongoing and potential regulatory changes. The firm is a powerhouse in Spanish-language media due to its programming prowess and ownership of the leading broadcast networks in Mexico, which garner about 70% audience share. Televisa is a dominant producer of Spanish-language programming, especially telenovelas, which draw huge audiences. Telenovelas are also popular with Spanish-speaking viewing audiences in the United States via distribution partner Univision, which pays royalties to Televisa based on an agreement that runs through 2025. We believe Televisa can retain a dominant position because of its huge market share and programming prowess, even though the government has granted a license for a new entrant into the broadcast market.