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Americans love Mexico's Televisa.

Americans were among those lining up to buy a minority stake in Emilio Azcarraga's Mexican Televisa S.A. The TV network is a government-sanctioned monopoly, and Televisa also owns a cable network and ten radio stations, along with Mexico's largest bullring, a soccer stadium and two soccer teams.

Azcarraga estimated the value of his company at $760 million, which represents close to 40 times the estimated 1991 earnings. Some nine million shares in Televisa were bought, mostly by foreign interests, on the Mexican stock market, the Bolsa.

Another 60 million came in private placements in the U.S., Japan and Europe. The target price per share was $11.50, but was eventually bumped up to $12.50 as the offering was oversubscribed. The offering was called "brilliant pouncing" on the part of Azcarraga by Forbes magazine, which noted that Televisa was actually losing money. And Forbes added: "The same liberalizing forces that have generated so much optimism about Mexico's prospects may make it difficult for Televisa to make money in the years ahead. The cozy relationship between Azcarraga and the Mexican government may be coming to an end."

Forbes noted that Mexico's economic prospects were good "but whether Televisa is worth almost 40 times earnings and five times revenues is very much open to question."
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Title Annotation:Mexican Televisa S.A.
Publication:Video Age International
Date:Feb 1, 1992
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