Hemisphere Media Completes Acquisition of Three Leading Spanish-Language
Cable Television Networks
MIAMI -- April 1, 2014
Hemisphere Media Group, Inc. (NASDAQ:HMTV) (“Hemisphere”), the only publicly
traded pure-play U.S. media company targeting the high growth Hispanic
TV/cable networks business, today completed the previously announced purchase
of three Spanish-language cable television networks from Media World, LLC
through Hemisphere Media Holdings, LLC, its indirect wholly-owned subsidiary,
for a total consideration of approximately $101.9 million in cash, subject to
certain post-closing adjustments.
The addition of three market-leading and highly complementary cable networks
to Hemisphere’s portfolio builds on the Company’s commitment to provide unique
programming focused on the U.S. Hispanic market. The networks acquired are:
*Pasiones, dedicated to showcasing the most-popular telenovelas and series,
distributed in the U.S and Latin America to over 11 million subscribers;
*Centroamerica TV, the leading network targeting the third largest U.S.
Hispanic group, featuring the most popular news, entertainment and soccer
programming from Central America with over 3.3 million subscribers in the
*TV Dominicana, the leading network targeting Dominicans living in the
U.S., featuring the most popular news, entertainment and baseball
programming from the Dominican Republic, with over 2.2 million subscribers
in the U.S.
Alan Sokol, CEO of Hemisphere, said, “We are thrilled to own these outstanding
networks and look forward to integrating them into the Hemisphere portfolio.
This transaction expands our leadership position in Hispanic media and
positions the Company to realize significant long-range opportunities. We are
excited to continue to build on the programming, marketing and distribution
efforts of these highly complementary businesses.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to
Hemisphere. Rothschild served as financial advisor and Kirkland & Ellis, LLP
served as legal counsel to Media World.
Further information regarding the transaction is contained in the Company's
Current Report on Form 8-K to be filed with the SEC and which may be accessed
About Hemisphere Media Group, Inc.
Hemisphere Media Group (NASDAQ: HMTV) is the only publicly-traded pure-play
U.S. Spanish-language TV/cable network business serving the high-growth U.S.
Hispanic population. Headquartered in Miami, Florida, Hemisphere owns and
operates Cinelatino, WAPA Television and WAPA America. Cinelatino is the
leading Spanish-language movie channel with more than 13 million subscribers
in the U.S., Latin America and Canada, featuring the largest selection of
contemporary Spanish-language blockbusters and critically-acclaimed titles
from Mexico, Latin America, Spain and the Caribbean. WAPA Television is Puerto
Rico’s leading broadcast station with the highest primetime and full day
ratings in Puerto Rico. Founded in 1954, WAPA Television produces more than 65
hours per week of top-rated news and entertainment programming. WAPA America
is the leading cable network targeting Puerto Ricans and other Caribbean
Hispanics living in the U.S., featuring the highly-rated news and
entertainment programming produced by WAPA-TV. WAPA America has more than five
million U.S. subscribers.
About Media World LLC
Mediaworld LLC is a company fully owned by Imagina US, which is primarily
focused in the Hispanic Market with annual revenues around $100 million
dollars, delivering production development, technical and production services,
sports rights acquisition and management, and strategic consulting to the
major players in the market.
Forward Looking Statement
This release may contain certain statements that are “forward-looking
statements” within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995. The forward-looking statements contained in this report
may include statements about the anticipated benefits of the acquisition, the
impact of the transaction on Hemisphere’s operations and financial performance
and other information and statements that are not historical facts. Without
limitation, any statements preceded or followed by or that include the words
“targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,”
“anticipates,” “estimates,” “projects,” “should,” “would,” “expect,”
“positioned,” “strategy,” “future,” or words, phrases or terms of similar
substance or the negative thereof, are forward-looking statements. These
statements are based on the current expectations of the management of
Hemisphere and are subject to uncertainty and changes in circumstance and
involve risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in such forward-looking statements.
In addition, these statements are based on a number of assumptions that are
subject to change. Such risks, uncertainties and assumptions include: (1)
risks relating to any unforeseen liabilities of Hemisphere and the acquired
assets, (2) future capital expenditures, expenses, revenues, earnings,
synergies, economic performance, indebtedness, financial condition, losses and
future prospects, businesses and management strategies and the expansion and
growth of the operations of Hemisphere; (3) Hemisphere’s ability to
successfully integrate the acquired assets and achieve anticipated synergies;
(4) the risk that disruptions from the transaction will harm Hemisphere’s
business; and (5) Hemisphere’s, plans, objectives, expectations and intentions
generally. Additionally, factors that could cause actual results to differ
materially from those expressed or implied by the forward-looking statements
are discussed under the heading “Risk Factors” and “Forward-Looking
Statements” in Hemisphere’s most recent Annual Report on Form 10-K as they may
be updated in any future reports filed with the SEC. Forward-looking
statements included herein are made as of the date hereof, and Hemisphere does
not undertakes any obligation to update publicly such statements to reflect
subsequent events or circumstances.
For Hemisphere Media Group, Inc.:
Robin Weinberg/Patrick Scanlan, 212-687-8080
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