Gato Investments’ Take Private of Hemisphere Media Group

Latham & Watkins represented Searchlight Capital Partners, L.P., while Paul, Weiss, Rifkind, Wharton & Garrison represented Hemisphere Media Group in the transaction. Davis Polk advised the special committee of the board of directors of Hemisphere Media Group.

Hemisphere Media Group, Inc. (NASDAQ: HMTV) (“Hemisphere” or the “Company”), a leading pure-play US media company targeting the high growth US Hispanic and Latin American markets with prominent broadcast, cable television, and digital content platforms, has entered into a definitive agreement to be acquired for US$7 per share in cash by a subsidiary of Gato Investments LP (“Gato”), a portfolio investment of Searchlight Capital Partners, L.P. (“Searchlight”). The offer price per share of common stock represents a premium of 86% over Hemisphere’s closing share price on May 6, 2022, the last trading day prior to announcement and a premium of approximately 63% over the 30-day average volume weighted share price for the period ended May 6, 2022. Upon completion of the transaction, Hemisphere will become a private wholly-owned indirect subsidiary of Gato.

Concurrently with the entry into the definitive merger agreement, Hemisphere has agreed to sell Pantaya, the leading Spanish language streaming platform in the US, to TelevisaUnivision in exchange for cash plus certain Puerto Rican radio assets of TelevisaUnivision. The TelevisaUnivision transaction is subject to customary closing conditions. 

The agreement with Searchlight includes a 30-day “go-shop” period expiring on June 7, during which Hemisphere may actively solicit and consider alternative acquisition proposals. The deal, announced on May 9, is expected to close in the third quarter of 2022, pending customary closing conditions and regulatory approvals. 

Searchlight is a global private investment firm with over $10 billion in assets under management and offices in New York, London and Toronto. 

Latham & Watkins LLP represented Searchlight Capital Partners, L.P. in the transaction with a corporate team led by partners David Beller (Picture) and David Allinson, with associates Tom Engelhardt, Adam Abulawi, William Tevlin, Miles Russell Gilhuly, and Bhavin Shah. Advice was also provided on finance matters by partner Scott Ollivierre, with associates Alex Harris and Jovanna Grant; on FCC matters by partner Matthew Brill and counsel Elizabeth Park; on tax matters by partner Matthew Dewitz, with associate Joshua Guerra; on benefits & compensation matters by partner Adam Kestenbaum and counsel Krisa Benskin, with associate Grace Tang; on environmental matters by partner Gary Gengel and counsel David Langer, with associate Donna Chen; on antitrust matters by partner Mandy Reeves and counsel Peter Todaro, with associate Daniel Ambar; on FCPA & export/sanctions matters by partners Les Carnegie and Joseph Bargnesi, with associate Kristen Haight; on IP matters by partner Anthony Klein, with associates Amy Tosi and Nick Goshgarian; on data privacy matters by counsel Robert Blamires, with associates Adriana Beach and Ishita Mattoo; on real estate matters by counsel Shira Bressler; on CFIUS matters by partner James Barker; on entertainment, sports & media matters by partner Kendall Johnson, with associates Jamie Levine and Molly Wolfe; and on funds matters by partners Andrea Schwartzman and Gregory Hannibal, with associate Oliver Prakash-Jenkins.

The Paul, Weiss team included corporate partners Jeffrey Marell and Suhan Shim and counsel John Godfrey, Jason Tyler and Patricia Vaz de Almeida; executive compensation partner Lawrence Witdorchic and counsel Meghan Fox; intellectual property partner Claudine Meredith-Goujon; tax partner Robert Holo; litigation partner Andrew Gordon and counsel Steven Herzog; and real estate partner Peter Fisch. 

The Davis Polk corporate team included partners Oliver Smith and Darren M. Schweiger and associate Malik M. Khalil. Partner Jennifer S. Conway and associate Chloe Wang provided executive compensation advice. 

Involved fees earner: Jennifer Conway – Davis Polk & Wardwell; Malik Khalil – Davis Polk & Wardwell; Darren Schweiger – Davis Polk & Wardwell; Oliver Smith – Davis Polk & Wardwell; Chloe Wang – Davis Polk & Wardwell; Amy Tosi – Latham & Watkins; Adam Abulawi – Latham & Watkins; David Allinson – Latham & Watkins; Daniel Ambar – Latham & Watkins; Joseph Bargnesi – Latham & Watkins; James Barker – Latham & Watkins; Adriana Beach – Latham & Watkins; David Beller – Latham & Watkins; Krisa Benskin – Latham & Watkins; Robert Blamires – Latham & Watkins; Shira Bressler – Latham & Watkins; Matthew Brill – Latham & Watkins; Les Carnegie – Latham & Watkins; Matthew Dewitz – Latham & Watkins; Thomas Engelhardt – Latham & Watkins; Gary Gengel – Latham & Watkins; Miles Russell Gilhuly – Latham & Watkins; Nick Goshgarian – Latham & Watkins; Jovanna Grant – Latham & Watkins; Gregory Hannibal – Latham & Watkins; Alex Harris – Latham & Watkins; Kendall Johnson – Latham & Watkins; Adam Kestenbaum – Latham & Watkins; Anthony Klein – Latham & Watkins; David Langer – Latham & Watkins; Jamie Levine – Latham & Watkins; Scott Ollivierre – Latham & Watkins; Elizabeth Park – Latham & Watkins; Oliver Prakash-Jenkins – Latham & Watkins; Amanda Reeves – Latham & Watkins; Andrea Schwartzman – Latham & Watkins; Bhavin Shah – Latham & Watkins; William Tevlin – Latham & Watkins; Peter Todaro – Latham & Watkins; Molly Wolfe – Latham & Watkins; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Meghan Fox – Paul Weiss Rifkind Wharton & Garrison; John Godfrey – Paul Weiss Rifkind Wharton & Garrison; Andrew Gordon – Paul Weiss Rifkind Wharton & Garrison; Steven Herzog – Paul Weiss Rifkind Wharton & Garrison; Robert Holo – Paul Weiss Rifkind Wharton & Garrison; Jeffrey Marell – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; Suhan Shim – Paul Weiss Rifkind Wharton & Garrison; Jason Tyler – Paul Weiss Rifkind Wharton & Garrison; Patricia Vaz de Almeida – Paul Weiss Rifkind Wharton & Garrison; Lawrence Witdorchic – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Davis Polk & Wardwell; Latham & Watkins; Paul Weiss Rifkind Wharton & Garrison;

Clients: Hemisphere Media Group – Board of Directors; Hemisphere Media Group, Inc.; Searchlight Capital Partners, L.P.;