Mexico's Televisa, partner Univision push back trial

Mon Apr 28, 2008 11:46pm EDT
 
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By Cyntia Barrera Diaz

MEXICO CITY (Reuters) - Leading Spanish-language broadcaster Televisa and partner Univision have pushed back a trial over the Mexican company's bid to pull out of a programming deal, a sign that an out-of-court settlement may be in the works.

The two companies were set to face off in a U.S. District Court in Los Angeles on Tuesday after three years of legal battles that have curbed Televisa's expansion in the booming U.S. Hispanic market. But the trial was put back at the last minute.

"It happened today at the request of both sides," a Univision spokeswoman said. The trial date is now July 1.

Televisa declined comment. Univision said it could not comment on the delay.

The case dates back to 2005 when Televisa filed a lawsuit demanding royalty payments it said Univision had withheld as part of the programming deal that expires in 2017.

At stake is viewership and growth in the United States, where Hispanics are the fastest-growing minority and the Spanish-language television market is considered underserved.

If Televisa, the world's biggest producer of Spanish-language shows, wins the case it could turn to new partners that include Univision's U.S. rival Telemundo, to sell programming at a higher price.

"I think Televisa has the upper hand here ... if the programming deal falls apart," said David Joyce, an analyst with Miller Tabak & Co LLC in New York.  Continued...

 

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