MEXICO CITY, March 2, 2017 /PRNewswire/ -- Grupo Televisa, S.A.B. ("Televisa" or the "Company"; NYSE: TV; BMV:TLEVISA CPO) announced today that it, together with some of its subsidiaries, has been declared by the Federal Telecommunications Institute ("IFT") to be an economic agent with substantial power in the market of restricted television and audio, based on data relevant up to 2014.
On September 30, 2015, IFT had resolved that there were no elements to determine the existence of substantial power by the Company in that market (the "Original Ruling").
On January 19, 2017, as a result of an injunction filed by a competitor, a Circuit Court ordered IFT to revoke the Original Ruling and issue a new ruling. In summary, the Court determined that in IFT's original examination, IFT took into consideration elements of information outside the relevant period of time under review, which should have been exclusively the period between January 2009 and August 2014.
As a consequence of the ruling notified to the Company, IFT will begin a new proceeding by which it may or may not determine the imposition of certain measures on the Company in respect to the relevant market. The Company will be heard in this proceeding.
The Company considers that the reversal of IFT's Original Ruling is unconstitutional and does not comply with the guidelines of the Circuit Court and, therefore, it will pursue all options in its defense. Even though the Company will vigorously defend its stance, it is not possible to determine the outcome.
Televisa is a leading media company in the Spanish-speaking world, an important cable operator in Mexico and an operator of a leading direct-to-home satellite pay television system in Mexico. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 50 countries through 26 pay-tv brands, and television networks, cable operators and over-the-top or "OTT" services. In the United States, Televisa's audiovisual content is distributed through Univision Communications Inc. ("Univision") the leading media company serving the Hispanic market. Univision broadcasts Televisa's audiovisual content through multiple platforms in exchange for a royalty payment. In addition, Televisa has equity and warrants which upon their exercise would represent approximately 36% on a fully-diluted, as-converted basis of the equity capital in Univision Holdings, Inc., the controlling company of Univision. Televisa's cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers through five cable Multiple System Operators in Mexico. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, and gaming.
Carlos Madrazo / Tel: (52 55) 5261 2445 / firstname.lastname@example.org
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SOURCE Grupo Televisa, S.A.B.