CONTACT: Media Investors
Stephanie Pillersdorf/Kristin Celauro Andrew W. Hobson
Citigate Sard Verbinnen Univision Communications Inc.
UNIVISION MUSIC GROUP COMPLETES ACQUISITION OF FONOVISA CREATING
A LEADING LATIN MUSIC COMPANY IN THE U.S., MEXICO AND PUERTO RICO
LOS ANGELES, CA, APRIL 19, 2002 – Univision Communications Inc. (NYSE: UVN), the leading Spanish-language media company in the United States, today announced that the Univision Music Group (UMG) has completed its acquisition of Fonovisa Records, creating the leading Latin music company in the U.S. and Puerto Rico with more than a 35% market share. UMG is also one of the leading Latin music companies in Mexico through its joint venture with Disa Records. As part of the transaction, UMG also acquired Fonomusic and America Musical Publishing companies, which it will integrate into the newly formed Univision Music Publishing division.
Less than one year after the successful launch of UMG, the Company now includes well-established Latin music labels Fonovisa Records, Univision Music and a 50% interest in Disa Records through the Univision Music Group-Mexico. These labels produce the best Spanish and English-language artists with Latin influences and cross-over appeal. In recent months, Fonovisa Records and Univision Music artists have dominated the Regional Mexican Billboard charts. In addition, Univision artist Pilar Montenegro has been #1 on Billboard’s ‘Hot Latin Tracks’ chart for the past five weeks.
“Latin music is achieving phenomenal popularity, both in the U.S. and around the world,” said José Behar, President and Chief Executive Officer, UMG. “With its long history of representing the finest Latin artists, Fonovisa is an incredible addition to the Univision Music Group and we are thrilled to now include this prominent label under the UMG umbrella. Together with Disa Records – which is run by the remarkable Chávez family – and the Univision Music label, UMG’s three-label platform secures our position as the #1 Latin music company in the U.S., Mexico and Puerto Rico and positions us for continued growth throughout Europe, Asia and the rest of the world. This powerful platform is complemented by the promotional clout of the Univision, TeleFutura and Galavision Networks and Univision Online as well as by the strength of our distribution partner, Universal Music and Video Distribution.”
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UMG’s management team includes José Behar, President and Chief Executive Officer; Dave Palacio, Executive Vice President and Chief Financial Officer; Manolo Gonzalez, Vice President, National Promotion and A&R; Lupe De La Cruz, Vice President, National Marketing; Felipe Luna, Vice President, National Sales; Dorothy Richardson, Vice President, Business Affairs; Peggy Dold, Vice President International; and Lorena Fusilier, Director of Special Projects. Univision Music Group-Mexico will be led by Alfonso Larriva, Vice President and General Manager and Miguel Angel Sanchez, Executive Vice President and Chief Financial Officer.
Behar continued, “UMG has put a talented management team in place, with proven track records and a demonstrated ability to develop Latin artists with international appeal. I look forward to working with this team, the Chávez family, Universal and our talented artists as we strive to leverage our strong brands and build UMG’s presence as the premier global Latin music and publishing company.”
UMG will oversee all business affairs, finance and sales for the Fonovisa and Univision labels, while both labels will maintain their own A&R, marketing and promotion departments. Disa will continue to operate independently. The Fonovisa, Univision and Disa labels will each adhere to their own culture and identity to ensure diversity within the music group:
Ø Univision Music is an international label focusing on all genres (pop, tropical, regional Mexican) of Latin music. The label’s current chart-topping talent include Pilar Montenegro, Jesse Morales, Iman Forrasteros, Chris Perez Band, Jaime Camil, Jennifer Peña -- whose single “Vamos Al Mundial” has been chosen as Univision’s 2002 World Cup theme song -- and Daniel Rene, a bicultural singer/songwriter who will release his first album as a solo artist this summer.
Ø Fonovisa is the leading Regional Mexican label in the world. The Fonovisa label will be expanded internationally, capitalizing on the success of its current roster of pop and Regional Mexican artists. Fonovisa’s current roster of popular artists include Los Tigres del Norte, Los Temerarios, Marco Antonio Solis, Conjunto Primavera, Banda El Recodo, Los Angeles de Charly, Los Huracanes del Norte, Grupo Exterminador, Noelia, Ana Barbara, among others. Key management include: José Luis Mogollon, Vice President Operations; Danny Mireles, Vice President, National Promotion; and Carlos Maharbiz, Vice President A&R UMG/East Coast Operations Fonovisa.
Ø Disa Records, managed by the Chávez family of Monterrey, Nuevo Leon, Mexico, is Mexico’s leading independent label. The Univision Music Group owns 50 percent of Disa Records with the rights to purchase the remaining 50 percent. Disa Records currently represents more than 50 artists, including Palomo, Los Angeles Azules, Grupo Bryndis, Liberación, El Poder del Norte, Los Cardenales de Nuevo Leon, among others.
UMG plans to move its corporate headquarters to Woodland Hills, California this summer, making it the only major Latin music label on the West Coast. UMG will also maintain offices in New York, Chicago, Miami, Atlanta, San Antonio and San Juan, Puerto Rico.
Univision Music Group
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Univision Communications Inc. (NYSE: UVN) is the premier Spanish-language media company in the United States. Its operations include: Univision Network, the most-watched Spanish-language broadcast television network in the U.S. reaching 97% of U.S. Hispanic households; TeleFutura Network, a new 24-hour general-interest Spanish-language broadcast television network reaching 72% of U.S. Hispanic households and counter-programming traditional Spanish-language lineups to draw additional viewers to Spanish-language television; Univision Television Group, which owns and operates 46 television stations (21 Univision and 25 TeleFutura); Galavision, the country’s leading Spanish-language cable network; Univision Music Group, which includes the Univision Music label, Fonovisa Records label and a 50% interest in Mexican-based Disa Records label as well as Fonomusic and Americal Publishing companies, which will be integrated into the newly formed Univision Music Publishing company; and Univision Online, the premier Internet company in the U.S. Hispanic market reaching 80% of the nation’s Spanish-speaking online audience at www.univision.com. Univision Communications is headquartered in Los Angeles with network operations in Miami and television stations and sales offices in major cities throughout the United States.
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