Grupo Televisa SA, the world's largest Spanish-language broadcaster, gained the most in almost two years in Mexico trading after agreeing to buy as much as 35% of Univision Communications Inc. to
expand in the U.S. The $1.2 billion investment will include a 5% stake and debt that can be converted into a stake of up to 30% of Univision. Televisa also has an option to buy an additional 5% of the
closely held U.S. broadcaster after three years.
The deal may help Mexico City-based Televisa add viewers for its Mexican-made programs, including prime-time soap operas known as
telenovelas, in a market where Hispanics make up about 16% of the country's 307 million people, according to the U.S. Census Bureau's 2009 estimate. Televisa is investing in a broadcaster whose
liabilities exceeded its assets by $1.6 billion as of June. The agreement gives Univision the right to show Televisa's programs on digital pay-TV services and on the Internet, providing both companies
with new ways to earn revenue in the U.S.
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