Televisa’s CEO Eyes U.S. Citizenship

Emilio Azcarraga Jean, the chief executive of Mexican media giant Grupo Televisa, said Monday he was considering applying for U.S. citizenship to expand the reach of his Spanish-language empire among U.S. Latinos.

“If it would be in Televisa’s best interest that I apply for double citizenship, then that’s what I would do,” Azcarraga said in an interview. “We are just studying it now. We are in talks, but no papers have been submitted yet.”

With a U.S. passport, Azcarraga could try to follow in the footsteps of Australian-born Rupert Murdoch, who took U.S. citizenship in the 1970s to get around legal limits on media ownership by foreigners.

Murdoch’s News Corp. owns Fox television network, 20th Century Fox film studios and a host of newspapers and satellite stations.

Grupo Televisa is the biggest producer of Spanish-language media content in the world, with magazine, radio and live entertainment divisions, as well as 70% of the Mexican TV advertising market.

If Azcarraga received U.S. citizenship he could then buy or increase equity stakes in U.S. companies, including leading U.S. Spanish-language media company Univision Communications Inc., in which Televisa owns a 15% stake.

“Investors are always concerned that investment in the U.S. could be dilutive, because U.S. assets are more expensive than buying in Mexico,” said Matthieu Coppet, Latin America media analyst for UBS.

“On the other hand, it’s always better to be able to do things rather than not [be able]. And this is not something that we expect in the short term,” he added.

U.S. Latinos now number 37 million, making them the largest minority in the United States. Their annual spending power is estimated to be in the neighborhood of $600 billion.

Asked when he thought he could submit a formal application for citizenship, Azcarraga said: “It would be when we think it is important for Televisa. It could be in one day; it could be a matter of months.”

He declined to say on what basis he could get citizenship in the United States but said it could take a long time.

“It takes five years [to get U.S. citizenship], and the time frame changes to three years if you marry an American,” he said.

Azcarraga, who is divorced, has been linked to Sharon Fastlich, an American citizen.

Televisa’s New York Stock Exchange-traded shares rose 22 cents to $34.50.

In March Univision demanded a $30-million repayment from Televisa on the grounds it had overpaid for some assets of Fonovisa, the record label it bought from the Mexican company in 2002 for $235 million.

Some interpreted the news as a sign that the relationship between the media companies was turning bitter. But Azcarraga said that Televisa was happy with its relationship with Univision and that he hoped to reach a friendly agreement regarding the $30-million claim.

Univision gets most of its sports, news and entertainment programming from Televisa thanks to a 17-year contract with the Mexican company that expires in 2017.

Televisa’s content, which ranges from staple tear-jerk telenovelas to soccer matches narrated by passionate anchors, is mostly used to feed Univision’s networks -- two broadcast and one cable.

“Since we signed the contract [with Univision in 2000] and the sale of Fonovisa [in 2002], the relation with Univision is much better now,” Azcarraga said.