Univision Strikes Spanish-Net Deals

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Univision Communications Inc. has expanded its programming relationships with
Grupo Televisa and Venevision in exchange for those companies increasing their
equity stakes in the largest televiser of Spanish-language fare in the United
States.

The deals, announced Thursday, will give broadcast network Univision,
soon-to-be launched second broadcast network Telefutura and cable network
Galavisión exclusive U.S. rights to Televisa and Venevision programming through
2017.

Previously, Univision had first rights to the programming.
Moreover, the
programming deals will enable Telefutura to tap these programming resources in
time for its slated Jan. 14 launch. Univision is positioning Telefutura against
rival Telemundo Communications Group Inc., which NBC is buying for some $2
billion in cash and stock.

Through a joint venture, Univision is also charged with distributing five
premium channels Televisa currently runs in Latin America: a trio of music-video
channels and a pair of movie services.

A Univision spokeswoman said similar plans are being discussed with
Venevision.

After much wrangling, Televisa, Univision's chief programming supplier, will
extract more favorable terms from the broadcast network and Galavisión.

Its cut of advertising sales will grow to 12 percent in 2002 from 9 percent
this year after matching 2001 revenue benchmarks. Televisa will gain 12 percent
of Telefutura ad sales in 2002.

Venevision, meanwhile, may also be eligible for up to a 3 percent increase in
fees on incremental net time sales on Univision and Galavisión, as well as
additional Telefutura fees subject to program usage.

Under terms of the deal, Televisa will pay $375 million in cash to increase
its stake in Univision to about 15 percent from 6 percent. Venevision will
increase its stake to 19 percent from 18 percent.
In return, Univision will
also buy Televisa's regional recording business and Latin music label, Fonovisa,
for about $240 million in stock. Fonovisa will be merged into Univision Music
Group.

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