Univision Communications to acquire Cablevision News for $21 billion
Cablevision Communications Inc. CVC, -0.35% , the parent of Cox Communications Inc., is to acquire Univision’s cable and satellite TV and satellite radio businesses for an aggregate of $21.5 billion.
Univision is also expected to invest more than $300 million in its online and digital media businesses.
Univison said Wednesday that it will pay $21 a share for the Cablevision and $18.50 a share in the other companies.
Univisions chief executive officer, Randy Mastro, said in a statement that the deal was in line with the company’s strategy of developing its businesses to deliver value to consumers.
Univions stock has risen more than 30% this year, up from $4.30 a share on Wednesday.
Univisons share price has risen by more than 75% in 2017.
The companies are expected to continue expanding their broadband services.
Univications cable television business has been growing at a solid clip in the past two years, and Mastro said in the statement that his goal is to keep the company profitable.
Univys cable television network, which competes with Netflix Inc. and Dish Network Inc., has been expanding into new markets in recent years, Mastro added.
The deal is expected to close by the end of the year.
In an interview with CNBC on Wednesday, Mastron said that the merger will help Univisions reach more customers, as well as drive additional investments into its online services.
The merger would give Univision more flexibility and the ability to grow the company into a profitable, highly diversified business, Mastros said.
Univiions board also approved the deal.
Univionics chief financial officer, J. Craig Wilson, said that he expects the deal to close before the end-of-year holiday season, though it’s unclear how much Univions revenues will increase or fall as a result of the deal, which will help its bottom line.
Univion, which is also a telecommunications provider, is expected have revenues of $13.4 billion in 2020, up 13% from $12.4 bn last year.