Giant Mexican media company Televisa is making in-roads in the U.S. television market, investing $1.2 billion in debt-ridden Univision Communications Inc., according to Bloomberg. The initial investment gives Televisa a 5 percent stake in Univision, growing to as much as 40 percent eventually.
Such a deal, however, could violate U.S. law, which prohibits foreign companies from owning more than 25 percent of U.S. broadcasters, Reuters explained.
Televisa Executive Vice President Alfonso de Angoitia told Reuters that Televisa did not yet know how to deal with that law, adding that he hoped it would change eventually.
Note from the editor: This story was originally published by the Knight Center’s blog Journalism in the Americas, the predecessor of LatAm Journalism Review.
