What: Univision Holdings, Inc. and Grupo Televisa expand their relationship by unifying both of their content development and production efforts. Both companies will benefit from a single, integrated focus on the Hispanic audience in the United States and the domestic Mexican audience. Isaac Lee will become Chief Content Officer of both Univision and Televisa, while José Bastón Patiño will assume the role of President of Televisa International.
Why it matters: As we noted in our recent analysis piece, as a result of Televisa being able to raise its stake in Univision to more than 40%, the Mexican company takes effective control of Univision. The Mexican media behemoth now has many incentives to produce content for the U.S. Hispanic market as well as align its interests with those of Univision.
Both companies will benefit from a single, integrated focus on the Hispanic audience in the United States and the domestic Mexican audience, as well as from potential cost synergies from aligned content initiatives. The News and all other operations of both companies will remain independent, and the current terms and conditions of the existing programming license agreement between Univision and Televisa remain unchanged.
As part of this initiative, Isaac Lee, who currently serves as the Chief News, Entertainment & Digital Officer for Univision and Chief Executive Officer for Fusion, will assume the role of Chief Content Officer of both Univision and Televisa, effective immediately. His new role unifies the leadership and strategic direction of the production of content for consumers in the United States and Mexico.In his respective role at each company, Lee will continue to directly report to Randy Falco, President and CEO of Univision and will also now report to Emilio Azcárraga Jean, President of Televisa.
The new structure will enhance Univision’s and Televisa’s ability to serve a combined audience of approximately 175 million viewers in the United States and Mexico, with an aggregate purchasing power of close to $2 trillion dollars. This announcement reflects both companies’ continued commitment to serve the growing U.S. Latino community, while enabling them to compete more effectively in their respective markets in an environment where the viewing habits of consumers are evolving rapidly and where competition is increasing, both from new content offerings and from traditional and emerging platforms.
Lee has been leading journalistic teams for nearly 20 years at prominent publications serving Spanish-speaking audiences in the U.S. and Latin America and is widely recognized for his creativity, innovation and commitment to excellence. He joined Univision in December 2010 as President of News, and most recently held the position of Chief News, Entertainment & Digital Officer where he spearheaded the Company’s digital expansion and the creation of the Fusion Media Group, including the acquisition of the Gizmodo Media Group, and a strategic investment in The Onion Inc.
In addition, Televisa announced that José Bastón Patiño will assume the role of President of Televisa International, reporting directly to Azcárraga. Bastón will be responsible for the expansion of Televisa beyond Mexico and the United States, and will remain a member of the board of directors of Televisa.