TelevisaUnivision To Buy Streamer Pantaya From Hemisphere Media Group To Bolster ViX+

TelevisaUnivision is reducing its competition in the streaming market. Following the launch of its new global streaming service ViX in March, today the company announced it has made a deal to acquire Spanish-language streaming service Pantaya from the Hemisphere Media Group
HMTV
(HMG) to bolster the premier tier of ViX+, expected to debut in the second half of 2022.

The companies did not disclose the financial terms of the agreement but revealed it would comprise an exchange for cash plus certain Puerto Rican radio assets including WKAQ AM and KQ105 FM currently owned by TelevisaUnivision.

“The acquisition of Pantaya, which includes renowned content titles such as Señorita 89 and A La Mala, is an exciting opportunity to build upon our strategic growth plan as we continue to redefine the global streaming landscape,” says TelevisaUnivision President and Chief Transformation Officer Pierluigi Gazzolo.

Pantaya, the first full Spanish-language U.S. streamer, launched in 2017 as a joint venture between Lionsgate and Hemisphere Media Group, at first with limited content options but as it built a subscriber base, it started producing its own popular originals.

Its first scripted series, El Juego de las Llaves, which debuted in 2019, was a hit, leading to a two-season pick up with season 2 arriving to the service in September 2021. Pantaya also beefed up its programming slate with other shows, such as this year’s crime thriller La Negociadora – its first produced in Spain – and dramedy Mi Tío, as well as two seasons of non-scripted series De Viaje con los Derbez. Pantaya’s beauty pageant thriller Señorita 89, a STAR
AR
ZPLAY co-production, debuted in February.

HMG, which owned 25% of Pantaya, bought partner Lionsgate’s 75% stake for about $124 million in April 2021.

In a Q4 financial and overall 2021 results call in March, HMG’s President and CEO Alan Sokol, stated Pantaya had close to one million subscribers and although the service “experienced a modest quarter over quarter contraction in subscribers due to a lack of any major series releases in the quarter, stemming from pandemic-related production slowdowns earlier in the year,” he projected its 2022 series and movie lineup and expanded production pipeline would be “driving significant subscriber growth in 2022, and remain on track for achieving our long-term target of 2.5 to 3.0 million subscribers by 2025.”

TelevisaUnivision’s Gazzolo made reference to the value of the acquisition.

“We look forward to welcoming the Pantaya team, the existing subscribers, and having access to the thousands of hours of content assets which perfectly complement TelevisaUnivision’s prolific long-form content engine, industry-leading library, and extensive portfolio of IP and sports rights. In April we launched our global AVO
VO
D service ViX, and we will launch our global SVOD service ViX+ in the second half of this year, which will be further accelerated by this strategic acquisition.”

The transaction is expected to close in the second half of 2022, pending regulatory approvals.

“Pantaya will flourish under TelevisaUnivision’s ownership. Given the highly competitive multi-language SVOD streaming environment, Pantaya’s service is best positioned under an organization that can provide the resources and investment it needs to scale and grow,” says Sokol. “Hemisphere’s acquisition of certain Univision Puerto Rican radio assets will be an ideal complement to WAPA, Puerto Rico’s leading broadcast network. Post-closing, we will continue to work closely with the TelevisaUnivision Uforia programming team who, with its deep music expertise, will continue to program the KQ105 FM station.”

HMG, which in addition to Pantya, owns seven cable networks, including Cine Latino and Pasiones and Puerto Rico’s WAPA-TV today also announced it entered into a separate agreement to be acquired for $7.00 per share in cash by a subsidiary of Gato Investments LP, a portfolio investment of Searchlight Capital Partners, which acquired a majority stake in Univision Holdings in 2020.

Once the transaction is completed, Hemisphere will become a private company wholly-owned by Gato. The deal is expected to close in the third quarter of 2022. It is subject to regulatory and Hemisphere stockholders approvals and the consummation of the TelevisaUnivision transaction.

Reuters reported HMG was exploring a potential sale of the company in 2021.