Televisa Sues Univision & Televisa Chairman Resign From Univision Communications Board.

Grupo Televisa Chairman Emilio Azcarraga Jean and Executive Vice President Alfonso De Angoitia resigned their posts as directors of Univision Communications.

The resignations feed fuel to the fire of riffs between Mexican TV giant Televisa and Univision Communications, stemming from the Univision Communications decision to name Ray Rodriguez COO of the company and royalties due to Televisa from Univision.

The Mexican TV giant Televisa has file a suit against Univision Communications for royalties due Televisa. These occurrences come at a precise time during the week prior to the very important 2005 Upfront Season next week.

According to the Univision Communications 8-K form file with securities and Exchange Commission:

On May 9, 2005, Televisa filed a complaint in the United States District Court Central District of California alleging breach by us of our program license agreement with Televisa, including breach for our alleged failure to pay Televisa royalties attributable to revenues from one of Televisa’s programs and the Company’s allegedly unauthorized editing of certain Televisa programs and related copyright infringement claims.

In relation to such claims, Televisa seeks monetary relief in an amount not less than $1.5 million for breach and, for anticipated breach, declaratory relief against the Company’s ability to recover amounts of approximately $5 million previously paid in royalties to Televisa, and an injunction against our alteration of Televisa programming without Televisa’s consent.

The Company denies any breach or anticipated breach of the program license agreement with Televisa and intends to vigorously defend the lawsuit.