Televisa and Univision settle lawsuit

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A lawsuit brought by Mexico media giant Grupo Televisa against Univision Communications Inc. has been settled, averting a potentially costly outcome that could have hobbled the dominant Spanish-language broadcaster in the U.S.

The settlement came shortly before Grupo Televisa Chairman Emilio Azcarraga Jean was to take the stand in a Los Angeles federal courtroom in an effort to sever his company’s ties with Univision by cutting off the pipeline of Televisa’s popular soap operas, called telenovelas, that drive Univision’s huge ratings.

Televisa sued Univision nearly four years ago for breach of contract, contending that Univision had cheated it out of royalties. Azcarraga Jean had planned to ask a jury to allow his company to terminate its 25-year commitment to provide programs to Univision.

-- Meg James