Universal Music Group (UMG) and Univision Communications Inc., the leading Spanish-language media company in the U.S., announced a definitive agreement under which UMG will acquire Univision Music Group, including its music recording and publishing division. Univision Music Group is the #1 Latin music company in the U.S. Financial terms of the transaction were not disclosed, and the acquisition is subject to regulatory approvals and customary closing conditions.
Univision Music Group, which includes Univision Records, Fonovisa Records, Disa Records, Univision Music Mexico and Univision Music Publishing.
As part of this transaction, UMG will continue Univision Music's long-established relationship with Univision's broadcast television networks under a long-term agreement that will allow UMG to promote its Latin artists on the Univision Network and on Spanish-language network TeleFutura.
"Univision Music Group's artists, labels and catalog are among the finest in Latin music," said Zach Horowitz, president and chief operating officer of UMG. "This acquisition expands UMG's presence in one of the most dynamic and vital genres of music today. We are especially excited about our important partnership with Univision's television networks, the most-watched Spanish-language broadcast television networks in the U.S., as we continue the major television advertising campaigns that have proven so effective in promoting Univision Music's artists in the past. We'd also like to thank Jose Behar, President and CEO and Founder of Univision Music Group and his team for all their efforts in building the company into what it is today."
"We're delighted with this transaction and pleased that our talented artists will continue to flourish with UMG, the global leader in the music industry," stated Joe Uva, Chief Executive Officer of Univision Communications. "The sale of Univision Music Group is an important step in the execution of our strategic plan to divest certain non-core assets in order to focus exclusively on our television, radio and online businesses."
Doug Morris, chairman and chief executive officer of UMG, added, "The acquisition of Univision Music Group highlights our ongoing commitment, and that of our parent company Vivendi, to the music business in general and to the Latin music business in particular. Univision Music Group's artists are among the best in any genre of music."
Jesus Lopez, Chairman and CEO of Latin America and Iberian Peninsula, UMG, said, "The Univision Music team has built an exciting and powerful catalog of Latin music that complements UMG's already well-established roster of Latin recording artists and songwriters in both the U.S. and Mexico, with a great potential to expand them around the world. We are delighted to welcome the Univision Music employees, artists and songwriters to the UMG family."
Jose Behar, President and CEO and Founder of Univision Music Group, said, "I would like to thank Mr. Perenchio for affording me the opportunity to create the premier Latin Music Company in the world. I also want to thank Univision's Management team, all of Univision Music's talented artists and employees, and the Univision Networks, Univision Online and Universal Music Group Distribution for their wonderful support throughout the years. I am so proud of the portfolio we've built and I am confident that Univision Music will continue to thrive under the guidance of the talented team at UMG."