MUMBAI: Mexico‘s Grupo Televisa has finalized a deal with New York-based Univision Communications to extend the programming licensing agreement that was announced last October. The deal will keep Televisa‘s telenovelas on Univision‘s networks for at least another 15 years.

As part of the deal, Televisa paid Univision $1.2 billion in exchange for a 5 per cent stake in Univision. This money can be used by the latter to refinance some of its debt taken on in its 2007 leveraged buyout by which media mogul Haim Saban and private equity groups Providence Equity Partners, Madison Dearborn Partners, Thomas H. Lee Partners and Texas Pacific Group took over the company.

The deal lets Univision assume control of the pay television operation TuTV that was earlier a joint venture between the two companies. Univision will also be allowed to run Televisa‘s programming on the internet in the US and on other digital platforms.

As part of the arrangement, three Televisa officials will join Univision‘s board. Televisa chairman and chief executive Emilio Azcárraga Jean will join Univision‘s board while the other two officials would be Televisa executive vice president Alfonso de Angoitia and Televisa board member and managing director of Allen & Co., Enrique F. Senior Hernández.