Spinning Off Sports and Gambling Ventures for Greater Autonomy
Telecommunications giant, Televisa, to separate sports and gambling operations into dedicated entities by mid-2023.
Get ready for a shift in the world of Grupo Televisa as they plan to detangle their core media and television businesses from their sports and gambling subsidiaries. This spinoff aims to create a separate entity that will operate independently andlist on the Mexican stock exchange.
Televisa, a prominent media company based in Mexico, boasts a massive presence in Mexico through various broadcast channels and across over 70 countries via 27 TV brands, networks, cable operators, and streaming services. The businesses set to be spun off include Club America, a professional soccer club; the Aztec Stadium in Mexico City; gambling operations; and a magazines publishing business.
According to Grupo Televisa's most recent financial data, these businesses contribute roughly 7.4% to the group's total revenue and 3.4% to its EBITDA. It's all part of the company's strategy to zero in on its core operations post the merger of its television and content units with Univision, a leading US Spanish-language network.
Alfonso de Angoitia, co-CEO of Televisa, explains, "We aim to streamline Grupo Televisa as a cable and telecom operator, and a spinoff would provide a swifter route to separate our non-core businesses." He further adds, "The market doesn't place much value on these businesses as part of Grupo Televisa, so we believe more value can be generated as an independent company with these components."
In the past, Televisa has explored selling its non-core businesses, but has only managed to offload its radio assets and the minority stake in Ocesa Entertainment, a leading Latin American entertainment promoter, to Live Nation Entertainment in December 2021.
The new sports and gambling-focused business entity is expected to capitalize on the burgeoning sports and gambling industry in Latin America. With no debt and minimal capital expenditure, the primary investment would be in preparing the Aztec Stadium for the 2026 FIFA World Cup, which will be held across stadiums in the US, Canada, and Mexico.
Televisa ambitiously plans to finish the spinoff process in the first half of 2023, at which point the new business entity will begin trading on the Mexican stock exchange.
While this move away from sports and gambling ventures marks a new chapter for Grupo Televisa, it seems that the company remains optimistic about the future prospects of these businesses as an independent entity.
However, it is important to note that, as of the most recent available information, there is no clear indication of a planned spinoff or stock exchange listing for Grupo Televisa's sports and gambling subsidiaries. Steadfast investors should monitor Grupo Televisa's official statements for updates on their evolving strategy.
- The expected sports and gambling-focused business entity, set to operate independently, aims to simplify its operations and list on the Mexican stock exchange in the first half of 2023, capitalizing on the burgeoning sports and gambling industry in Latin America.
- Televisa, in its strategy to zero in on its core operations post the merger with Univision, has decided to isolate its brands such as Club America, Aztec Stadium, gambling operations, and magazines publishing business into a separate entity, with the goal of increasing value as an independent company.
- In line with its ambition to streamline the business, Televisa plans to reallocate investment from the spun-off sports and gambling subsidiaries towards preparing the Aztec Stadium for the 2026 FIFA World Cup, while the rest of the group focuses on its cable and telecom operations.
