| | | | By Order of the Hemisphere Board of Directors, | |
| | | |
Alex J. Tolston
Executive Vice President, Chief Legal Officer and Corporate Secretary |
|
|
4000 Ponce de Leon Boulevard, Suite 650
Coral Gables, FL 33146 Dated: June , 2022 |
| |
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| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | | |
| | | | | E-1 | | |
| | |
Low
|
| |
High
|
| ||||||
TEV/2022E Adjusted EBITDA (Post-SBC) – Network Peers
|
| | | | 5.0x | | | | | | 8.8x | | |
TEV/2022E Revenue – Pantaya Peers
|
| | | | 0.2x | | | | | | 3.2x | | |
|
Announcement Date
|
| |
Target/Seller
|
| |
Acquiror
|
|
|
January 27, 2016
|
| | Tennis Channel | | | Sinclair Broadcast Group | |
|
January 27, 2016
|
| | Media General, Inc. | | | Nexstar Media Group, Inc. | |
|
March 9, 2016
|
| | Crown Media Holdings, Inc. | | | Hallmark Cards, Inc. | |
|
June 30, 2016
|
| | Starz | | | Lions Gate Entertainment Corp. | |
|
October 22, 2016
|
| | Time Warner Inc. | | | AT&T Inc. | |
|
April 21, 2017
|
| | Bonten Media Group Holdings, Inc. | | | Sinclair Broadcast Group, Inc. | |
|
July 6, 2017
|
| | Liberty Interactive Corp. | | | HSN Inc. | |
|
July 31, 2017
|
| | Scripps Networks Interactive, Inc. | | | Discovery Communications, Inc. | |
|
December 14, 2017
|
| | Twenty-First Century Fox, Inc. | | | The Walt Disney Company | |
|
December 18, 2017
|
| | Midwest Television, Inc. (4 Stations) | | | Tegna | |
|
March 22, 2018
|
| | Weather Group | | | Entertainment Studios, Inc. | |
|
June 25, 2018
|
| | Raycom Media, Inc. | | | Gray Television, Inc. | |
|
August 20, 2018
|
| | Gray Television, Inc. (2 Stations) | | | TEGNA Inc. | |
|
October 29, 2018
|
| |
Cordillera Communications
(15 Stations) |
| | The E.W. Scripps Company | |
|
December 3, 2018
|
| | Tribune Media Company | | | Nexstar Media Group, Inc. | |
|
March 20, 2019
|
| |
Nexstar Media Group, Inc.
(11 Stations) |
| | TEGNA Inc. | |
|
March 20, 2019
|
| |
Nexstar Media Group, Inc.
(8 Stations) |
| | The E.W. Scripps Company | |
|
June 11, 2019
|
| |
Dispatch Broadcast Group (2 Stations)
|
| | TEGNA Inc. | |
|
August 13, 2019
|
| | Viacom Inc. | | | CBS Corp. | |
|
Announcement Date
|
| |
Target/Seller
|
| |
Acquiror
|
|
|
September 24, 2020
|
| | Ion Media | | | The E.W. Scripps Company | |
|
December 22, 2020
|
| | Harpo, Inc. (OWN: Oprah Winfrey Network) | | | Discovery, Inc. | |
|
March 26, 2021
|
| | MSG Networks Inc. | | | Madison Square Garden Entertainment Corp. | |
|
April 13, 2021
|
| | Group Televisa, S.A.B. | | | Univision Holdings II, Inc. | |
|
May 3, 2021
|
| | Meredith Corporation | | | Gray Television Inc. | |
|
February 22, 2022
|
| | TEGNA Inc. | | | Standard General L.P. | |
|
Announcement Date
|
| |
Target/Seller
|
| |
Acquiror
|
|
|
August 3, 2016
|
| | Hulu LLC | | | Time Warner Inc. | |
|
July 31, 2017
|
| | Funimation Global Group, LLC | | | Sony Pictures Television Inc. | |
|
July 20, 2018
|
| |
Hulu LLC (via Twenty-First
Century Fox, Inc.) |
| | The Walt Disney Company | |
|
July 30, 2018
|
| | RLJ Entertainment, Inc. | | | AMC Networks Inc. | |
|
January 22, 2019
|
| | Pluto TV | | | Viacom Inc. | |
|
April 15, 2019
|
| | Hulu LLC (from AT&T Inc./Time Warner Inc.) | | | Hulu LLC | |
|
May 13, 2019
|
| | Hulu LLC | | | The Walt Disney Company | |
|
March 17, 2020
|
| | Tubi | | | Fox Corporation | |
|
December 9, 2020
|
| | Crunchyroll | | | Sony Pictures Television Inc. | |
|
March 31, 2021
|
| | Pantaya | | | Hemisphere Media Group, Inc. | |
| | |
Low
|
| |
High
|
| ||||||
TEV/LTM EBITDA (post-SBC) – Networks Selected Transactions
|
| | | | 5.8x | | | | | | 16.2x | | |
TEV/LTM Revenue – Pantaya Selected Transactions
|
| | | | 1.5x | | | | | | 3.6x | | |
Diversified Media & Networks
|
| |
Equity
Value |
| |
EV
|
| |
EV / Adj
EBITDA 2022E |
| |
EV / Adj.
EBITDA ex. SVOD 2022E |
| |
EV / Adj.
EBITDA 2023E |
| |
EV / Adj.
EBITDA ex. SVOD 2023E |
| ||||||||||||||||||
| | |
($ in millions)
|
| |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Warner Bros. Discovery, Inc.
|
| | | $ | 43,072 | | | | | $ | 93,433 | | | | | | 8.8x | | | | | | 7.6x | | | | | | 6.7x | | | | | | 6.7x | | |
Paramount Global
|
| | | $ | 18,426 | | | | | $ | 30,688 | | | | | | 8.3x | | | | | | 5.9x | | | | | | 9.4x | | | | | | 6.1x | | |
Fox Corporation
|
| | | $ | 19,050 | | | | | $ | 20,959 | | | | | | 6.3x | | | | | | 6.3x | | | | | | 6.1x | | | | | | 6.1x | | |
AMC Networks, Inc.
|
| | | $ | 1,452 | | | | | $ | 3,727 | | | | | | 6.0x | | | | | | 5.8x | | | | | | 6.2x | | | | | | 5.9x | | |
Broadcasters
|
| |
Equity Value
|
| |
EV
|
| |
EV /
Avg. Adj. EBITDA 2021 – 2022E |
| |
EV /
Avg. Adj. EBITDA 2022 – 2023E |
| ||||||||||||
| | |
($ in millions)
|
| |
($ in millions)
|
| | | | | | | | | | | | | ||||||
Nextstar Media Group, Inc.
|
| | | $ | 6,827 | | | | | $ | 13,136 | | | | | | 6.4x | | | | | | 6.1x | | |
Gray Television, Inc.
|
| | | $ | 1,808 | | | | | $ | 8,971 | | | | | | 7.7x | | | | | | 7.5x | | |
TEGNA Inc.
|
| | | $ | 3,861 | | | | | $ | 7,278 | | | | | | 6.8x | | | | | | 6.3x | | |
E.W. Scripps Company
|
| | | $ | 1,404 | | | | | $ | 5,203 | | | | | | 7.8x | | | | | | 7.8x | | |
Entravision Communication Corp.
|
| | | $ | 398 | | | | | $ | 398 | | | | | | 5.0x | | | | | | 4.7x | | |
Subscription Streaming Companies
|
| |
Equity
Value |
| |
EV
|
| |
EV /
Revenue 2022E |
| |
EV / Adj.
EBITDA 2022E |
| |
EV /
Revenue 2023E |
| |
EV / Adj.
EBITDA 2023E |
| ||||||||||||||||||
| | |
($ in millions)
|
| |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Netflix Inc.
|
| | | $ | 80,400 | | | | | $ | 89,014 | | | | | | 2.7x | | | | | | 13.4x | | | | | | 2.5x | | | | | | 11.8x | | |
SiriusXM Holdings Inc.
|
| | | $ | 24,515 | | | | | $ | 33,748 | | | | | | 3.7x | | | | | | 12.6x | | | | | | 3.6x | | | | | | 11.9x | | |
Spotify Technology S.A.
|
| | | $ | 20,392 | | | | | $ | 17,904 | | | | | | 1.5x | | | | | | n/m | | | | | | 1.3x | | | | | | n/m | | |
Roku, Inc.
|
| | | $ | 14,038 | | | | | $ | 11,892 | | | | | | 3.2x | | | | | | n/m | | | | | | 2.5x | | | | | | n/m | | |
fuboTV Inc.
|
| | | $ | 516 | | | | | $ | 539 | | | | | | 0.5x | | | | | | n/m | | | | | | 0.3x | | | | | | n/m | | |
Chicken Soup for the Soul
Entertainment Inc. |
| | | $ | 150 | | | | | $ | 226 | | | | | | 1.5x | | | | | | 9.1x | | | | | | 1.2x | | | | | | 6.6x | | |
CuriosityStream Inc.
|
| | | $ | 111 | | | | | $ | 20 | | | | | | 0.2x | | | | | | n/m | | | | | | 0.1x | | | | | | n/m | | |
Announced
|
| |
Target
|
| |
Acquiror
|
| |
EV
|
| |
EV / LTM
Adj. EBITDA |
| ||||||
| | | | | | | | |
($ in millions)
|
| | | | | | | |||
April 2021
|
| |
Grupo Televisa S.A.B. (Content Assets)
|
| |
Univision Communications,
Inc. |
| | | $ | 4,800 | | | | | | 7.8x | | |
March 2021
|
| | MSG Networks Inc. | | |
Madison Square Garden Entertainment Corp.
|
| | | $ | 1,765 | | | | | | 5.9x | | |
December 2020
|
| | Oprah Winfrey Network | | |
Discovery Communications
|
| | | $ | 478 | | | | | | 5.7x | | |
August 2019
|
| | Viacom Inc. | | | CBS Corporation | | | | $ | 19,552 | | | | | | 6.6x | | |
March 2018
|
| | The Weather Channel | | | Allen Media Group | | | | $ | 977 | | | | | | 6.9x | | |
July 2017
|
| | Scripps Networks | | |
Discovery Communications
|
| | | $ | 14,260 | | | | | | 9.9x | | |
July 2017
|
| | Home Shopping Network | | | QVC | | | | $ | 2,594 | | | | | | 9.8x | | |
June 2016
|
| | Starz Inc. | | |
Lions Gate Entertainment Corporation
|
| | | $ | 4,400 | | | | | | 10.9x | | |
March 2016
|
| | Crown Media Holdings | | | Hallmark Cards, Inc. | | | | $ | 2,088 | | | | | | 10.1x | | |
January 2016
|
| | Tennis Channel | | |
Sinclair Broadcast Group, Inc.
|
| | | $ | 350 | | | | | | 16.2x | | |
Mean | | | | | | | | | | $ | 5,126 | | | | | | 9.0x | | |
Median | | | | | | | | | | $ | 2,341 | | | | | | 8.8x | | |
Announced
|
| |
Target
|
| |
Acquiror
|
| |
EV
|
| |
EV /
L8Q Avg. Adj. EBITDA |
| ||||||
| | | | | | | | |
($ in millions)
|
| | | | | | | |||
February 2022
|
| | TEGNA Inc. | | | Standard General | | | | $ | 8,605 | | | | | | 8.8x | | |
June 2021
|
| | Meredith Corporation | | | Gray Television, Inc. | | | | $ | 2,825 | | | | | | 9.9x | | |
September 2020
|
| | ION Media | | | E.W. Scripps Company | | | | $ | 2,650 | | | | | | 8.6x | | |
June 2019
|
| |
Dispatch Broadcast Group (2 Stations)
|
| | TEGNA Inc. | | | | $ | 535 | | | | | | 7.9x | | |
March 2019
|
| |
Nexstar Media Group, Inc. (8 Stations)
|
| | E.W. Scripps Company | | | | $ | 580 | | | | | | 10.4x | | |
March 2019
|
| |
Nexstar Media Group, Inc. (11 Stations)
|
| | TEGNA Inc. | | | | $ | 740 | | | | | | 12.0x | | |
December 2018
|
| | Tribune Media | | | Nexstar Media Group | | | | $ | 6,400 | | | | | | 9.2x | | |
October 2018
|
| |
Cordillera Communications (15 Stations)
|
| | E.W. Scripps Company | | | | $ | 521 | | | | | | 9.8x | | |
August 2018
|
| |
Gray Television, Inc. (2 Stations)
|
| | TEGNA Inc. | | | | $ | 105 | | | | | | 5.9x | | |
June 2018
|
| | Raycom Media, Inc. | | | Gray Television, Inc. | | | | $ | 3,660 | | | | | | 9.5x | | |
December 2017
|
| | Midwest Television, Inc. | | | TEGNA Inc. | | | | $ | 325 | | | | | | 6.6x | | |
April 2017
|
| | Bonten Media Group | | |
Sinclair Broadcast Group
|
| | | $ | 240 | | | | | | 6.7x | | |
January 2016
|
| | Media General | | | Nexstar Media Group | | | | $ | 4,115 | | | | | | 9.1x | | |
Mean | | | | | | | | | | $ | 2,408 | | | | | | 8.8x | | |
Median | | | | | | | | | | $ | 740 | | | | | | 9.1x | | |
Date Announced
|
| |
Target
|
| |
Acquiror
|
| |
EV
|
| |
EV / LTM
Revenue |
| ||||||
| | | | | | | | |
($ in millions)
|
| | | | | | | |||
April 2021
|
| | Pantaya | | |
Hemisphere Media Group, Inc.
|
| | | $ | 165 | | | | | | 3.6x | | |
January 2019
|
| | PlutoTV | | | Viacom Inc. | | | | $ | 340 | | | | | | 3.4x | | |
July 2018
|
| | RLJ Entertainment Inc. | | | AMC Networks, Inc. | | | | $ | 274 | | | | | | 2.9x | | |
July 2017
|
| |
Funimation Productions, Ltd.
|
| |
Sony Pictures Television
Networks |
| | | $ | 151 | | | | | | 1.5x | | |
Mean | | | | | | | | | | $ | 232 | | | | | | 2.9x | | |
Median | | | | | | | | | | $ | 220 | | | | | | 3.2x | | |
| | |
Management Forecast
|
| |
Management Extrapolation
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions)
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |
2027
|
| |
2028
|
| |
2029
|
| |
2030
|
| |
2031
|
| ||||||||||||||||||||||||||||||
Revenue (Networks)
|
| | | $ | 161 | | | | | $ | 164 | | | | | $ | 173 | | | | | $ | 170 | | | | | $ | 176 | | | | | $ | 179 | | | | | $ | 187 | | | | | $ | 183 | | | | | $ | 186 | | | | | $ | 188 | | |
Revenue (Pantaya)
|
| | | $ | 78 | | | | | $ | 138 | | | | | $ | 186 | | | | | $ | 181 | | | | | $ | 202 | | | | | $ | 243 | | | | | $ | 270 | | | | | $ | 289 | | | | | $ | 304 | | | | | $ | 317 | | |
Adjusted EBITDA (Networks)(1)
|
| | | $ | 66 | | | | | $ | 66 | | | | | $ | 70 | | | | | $ | 65 | | | | | $ | 66 | | | | | $ | 66 | | | | | $ | 70 | | | | | $ | 62 | | | | | $ | 61 | | | | | $ | 59(3) | | |
Adjusted EBITDA (Pantaya)(2)
|
| | | $ | (28) | | | | | $ | (15) | | | | | $ | (1) | | | | | $ | 14 | | | | | $ | 31 | | | | | $ | 51 | | | | | $ | 60 | | | | | $ | 69 | | | | | $ | 74 | | | | | $ | 76 | | |
Unlevered Free Cash Flow (Networks)(3)
|
| | | $ | 41 | | | | | $ | 43 | | | | | $ | 42 | | | | | $ | 40 | | | | | $ | 39 | | | | | $ | 37 | | | | | $ | 39 | | | | | $ | 34 | | | | | $ | 31 | | | | | $ | 30 | | |
Unlevered Free Cash Flow (Pantaya)(3)
|
| | | $ | (56) | | | | | $ | (31) | | | | | $ | (17) | | | | | $ | 12 | | | | | $ | 20 | | | | | $ | 36 | | | | | $ | 46 | | | | | $ | 55 | | | | | $ | 59 | | | | | $ | 59 | | |
Name
|
| |
Number of
Shares Held Directly |
| |
Aggregate
Value of Shares Held Directly ($) |
| |
Number of
Shares of Hemisphere RS Awards(1) |
| |
Aggregate
Value of Hemisphere RS Awards ($) |
| |
Number of
Shares Subject to Hemisphere Options(2) |
| |
Aggregate
Value of Hemisphere Options ($)(2) |
| |
Total
Value ($) |
| |||||||||||||||||||||
Executive Officers
|
| ||||||||||||||||||||||||||||||||||||||||||
Alan J. Sokol
|
| | | | 648,121 | | | | | | 4,536,847 | | | | | | — | | | | | | — | | | | | | 1,287,500 | | | | | | 0 | | | | | | 4,536,847 | | |
Craig D. Fischer
|
| | | | 326,473 | | | | | | 2,285,311 | | | | | | — | | | | | | — | | | | | | 675,000 | | | | | | 0 | | | | | | 2,285,311 | | |
John Garcia
|
| | | | 20,000 | | | | | | 140,000 | | | | | | 20,000 | | | | | | 140,000 | | | | | | — | | | | | | — | | | | | | 280,000 | | |
Jorge Hidalgo
|
| | | | 26,264 | | | | | | 183,848 | | | | | | 20,000 | | | | | | 140,000 | | | | | | 35,000 | | | | | | 0 | | | | | | 323,848 | | |
Jennifer Lopez-Gottardi
|
| | | | 10,000 | | | | | | 70,000 | | | | | | 10,000 | | | | | | 70,000 | | | | | | 25,000 | | | | | | 0 | | | | | | 140,000 | | |
Paul L. Presburger
|
| | | | 179,855 | | | | | | 1,258,985 | | | | | | 66,666 | | | | | | 466,662 | | | | | | — | | | | | | — | | | | | | 1,725,647 | | |
Monica B. Silverstein
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,000 | | | | | | 0 | | | | | | — | | |
Alex J. Tolston
|
| | | | 119,387 | | | | | | 835,709 | | | | | | 50,000 | | | | | | 350,000 | | | | | | 575,000 | | | | | | 0 | | | | | | 1,185,709 | | |
James M.
McNamara |
| | | | 1,244,628 | | | | | | 8,712,396 | | | | | | — | | | | | | — | | | | | | 400,000 | | | | | | 0 | | | | | | 8,712,396 | | |
Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Peter M. Kern
|
| | | | 876,384 | | | | | | 6,134,688 | | | | | | 6,161 | | | | | | 43,127 | | | | | | — | | | | | | — | | | | | | 6,177,815 | | |
Sonia Dulá
|
| | | | 25,500 | | | | | | 178,500 | | | | | | 2,054 | | | | | | 14,378 | | | | | | — | | | | | | — | | | | | | 192,878 | | |
John Engelman
|
| | | | 110,388 | | | | | | 772,716 | | | | | | 2,054 | | | | | | 14,378 | | | | | | — | | | | | | — | | | | | | 787,094 | | |
Ernesto Vargas Guajardo
|
| | | | 75,464 | | | | | | 528,248 | | | | | | 2,054 | | | | | | 14,378 | | | | | | — | | | | | | — | | | | | | 542,626 | | |
Leo Hindery, Jr.
|
| | | | 18,627 | | | | | | 130,389 | | | | | | 2,054 | | | | | | 14,378 | | | | | | — | | | | | | — | | | | | | 144,767 | | |
Eric Neuman
|
| | | | 75,464 | | | | | | 528,248 | | | | | | 2,054 | | | | | | 14,378 | | | | | | — | | | | | | — | | | | | | 542,626 | | |
Adam Reiss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Eric Zinterhofer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Cash
($)(1) |
| |
Equity
($)(2) |
| |
Perquisites/
Benefits ($)(3) |
| |
Total
($) |
| ||||||||||||
Alan Sokol
|
| | | | 6,150,000 | | | | | | | | | | | | 23,526 | | | | | | 6,173,526 | | |
Craig Fischer(5)
|
| | | | 3,425,000 | | | | | | | | | | | | 42,804 | | | | | | 3,467,804 | | |
Paul Presburger
|
| | | | 1,631,250 | | | | | | 466,662 | | | | | | 28,296 | | | | | | 2,126,208 | | |
Name
|
| |
Multiple
of Base Salary Severance ($) |
| |
Multiple
of Target Bonus Severance ($) |
| |
Prorated
Annual Incentive Severance ($) |
| |
Retention
Bonus Award ($) |
| |
Discretionary
Bonus ($) |
| |||||||||||||||
Alan Sokol
|
| | | | 2,400,000 | | | | | | 2,400,000 | | | | | | 600,000 | | | | | | 375,000 | | | | | | 375,000 | | |
Craig Fischer
|
| | | | 1,300,000 | | | | | | 1,300,000 | | | | | | 325,000 | | | | | | 250,000 | | | | | | 250,000 | | |
Paul Presburger
|
| | | | 1,500,000 | | | | | | — | | | | | | 131,250 | | | | | | — | | | | | | | | |
Description
|
| |
Amount
|
| |||
Financial advisory fees and expenses
|
| | | $ | — | | |
Legal fees and expenses
|
| | | $ | — | | |
Accounting and tax advisory fees
|
| | | $ | — | | |
SEC filing fees
|
| | | $ | 26,326.94 | | |
Printing, proxy solicitation and mailing costs
|
| | | $ | — | | |
Miscellaneous
|
| | | $ | — | | |
Total
|
| | | $ | — | | |
Name
|
| |
Age
|
| |
Position
|
|
Sonia Dulá
|
| |
61
|
| | Director | |
John Engelman
|
| |
66
|
| | Director | |
Leo Hindery, Jr.
|
| |
74
|
| | Director | |
Peter M. Kern
|
| |
55
|
| | Chairman | |
James M. McNamara
|
| |
68
|
| | Vice Chairman | |
Eric C. Neuman
|
| |
77
|
| | Director | |
Adam Reiss
|
| |
36
|
| | Director | |
Alan J. Sokol
|
| |
63
|
| |
Director, President and Chief Executive Officer
|
|
Ernest Vargas Guajardo
|
| |
66
|
| | Director | |
Eric Zinterhofer
|
| |
50
|
| | Director | |
Name
|
| |
Age
|
| |
Position
|
|
Craig D. Fischer
|
| |
53
|
| | Chief Financial Officer | |
John Garcia
|
| |
57
|
| | Executive Vice President, Sales & Revenue | |
Jorge Hidalgo
|
| |
57
|
| | President and General Manager, WAPA-TV, a division of WAPA | |
Jennifer Lopez-Gottardi
|
| |
45
|
| | Controller | |
Paul L. Presburger
|
| |
59
|
| | Chief Executive Officer of Pantaya and Pantelion 2.0 (as successor to Pantelion Films) | |
Monica B. Silverstein
|
| |
58
|
| | Chief Human Resources Officer | |
Alex J. Tolston
|
| |
41
|
| | Executive Vice President, Chief Legal Officer and Corporate Secretary | |
Fiscal Year
|
| |
High
|
| |
Low
|
| ||||||
2020 | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 15.07 | | | | | $ | 8.21 | | |
Second Quarter
|
| | | $ | 10.83 | | | | | $ | 8.00 | | |
Third Quarter
|
| | | $ | 10.11 | | | | | $ | 8.06 | | |
Fourth Quarter
|
| | | $ | 12.14 | | | | | $ | 7.64 | | |
2021 | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 14.44 | | | | | $ | 9.31 | | |
Second Quarter
|
| | | $ | 14.04 | | | | | $ | 11.28 | | |
Third Quarter
|
| | | $ | 13.19 | | | | | $ | 10.91 | | |
Fourth Quarter
|
| | | $ | 12.55 | | | | | $ | 6.71 | | |
2022 | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 7.80 | | | | | $ | 4.50 | | |
Second Quarter (through , 2022)
|
| | | $ | | | | | $ | | | |
Name and Address of Beneficial Owner
|
| |
Shares of
Class A Common Stock Beneficially Owned(1) |
| |
Percentage
of Class A Common Stock Beneficially Owned(1) |
| |
Shares of
Class B Common Stock Beneficially Owned(1) |
| |
Percentage
of Class B Common Stock Beneficially Owned(1) |
| |
Voting
Power(2) |
| |||||||||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gato Investments LP(3)
|
| | | | 15,744,913(3) | | | | | | 43.2%(3) | | | | | | 15,744,913 | | | | | | 79.8% | | | | | | 72.3% | | |
Grupo MVS Capital, S. de R.L. de C.V.(4)
|
| | | | 2,725,654(5) | | | | | | 11.6%(5) | | | | | | 2,725,654 | | | | | | 13.8% | | | | | | 12.5% | | |
Edenbrook Capital, LLC(6)
|
| | | | 3,089,289(6) | | | | | | 14.9%(6) | | | | | | — | | | | | | — | | | | | | 1.2% | | |
Fine Capital Partners, L.P.(7)
|
| | | | 3,415,930(7) | | | | | | 16.5%(7) | | | | | | — | | | | | | — | | | | | | * | | |
BlackRock, Inc.(8)
|
| | | | 1,096,532(8) | | | | | | 5.3%(8) | | | | | | — | | | | | | — | | | | | | * | | |
Named Executive Officers and Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Peter M. Kern(3)
|
| | | | 16,666,275(9) | | | | | | 44.8%(9) | | | | | | 16,394,913 | | | | | | 83.1% | | | | | | 75.3% | | |
Sonia Dulá
|
| | | | 25,500 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
John Engelman
|
| | | | 125,381 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Craig D. Fischer
|
| | | | 1,001,473(10) | | | | | | 4.7%(10) | | | | | | — | | | | | | — | | | | | | * | | |
Leo Hindery, Jr.
|
| | | | 33,620 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
James M. McNamara
|
| | | | 1,044,814(11) | | | | | | 4.8%(11) | | | | | | 599,814 | | | | | | 3.0% | | | | | | 2.9% | | |
Eric C. Neuman
|
| | | | 90,457 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Paul Presburger
|
| | | | 179,885(12) | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Adam Reiss
|
| | | | —(13) | | | | | | *(13) | | | | | | — | | | | | | — | | | | | | * | | |
Alan J. Sokol
|
| | | | 1,935,621(14) | | | | | | 8.8%(14) | | | | | | — | | | | | | — | | | | | | * | | |
Ernesto Vargas Guajardo
|
| | | | 90,457 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Eric Zinterhofer
|
| | | | —(13) | | | | | | *(13) | | | | | | — | | | | | | — | | | | | | * | | |
All directors and executive officers as a group
(17 persons) |
| | | | 22,024,097(15) | | | | | | 53.9%(15) | | | | | | 16,994,727 | | | | | | 86.2% | | | | | | 79.2% | | |
| | |
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| | | | A-75 | | | |
Exhibit A
Voting and Support Agreement
|
| | | | | | |
Exhibit B
Form of Certificate of Merger
|
| | | | | | |
Exhibit C
Form of LLC Certificate of Merger
|
| | | | | | |
Term
|
| |
Section
|
|
Acceptable Confidentiality Agreement | | | 6.02(c) | |
Adverse Recommendation Change | | | 6.02(d) | |
Agreement | | | Preamble | |
Alternative Acquisition Agreement | | | 6.02(b)(ii) | |
Alternative Debt Financing | | | 6.15(b) | |
Antitrust Laws | | | 4.03 | |
Book-Entry Share | | | 3.01(b) | |
Cancelled Shares | | | 3.01(c) | |
Capitalization Date | | | 4.05(a) | |
CBA | | | 4.16(h) | |
Certificate | | | 3.01(b) | |
Certificate of Merger | | | 2.02(a) | |
Closing | | | 2.01 | |
Closing Date | | | 2.01 | |
COBRA | | | 4.16(e) | |
Company | | | Preamble | |
Company Board | | | Recitals | |
Company Board Recommendation | | | 4.02(b) | |
Company Expenses Cap | | | 8.03(g) | |
Company Financial Statements | | | 4.06(b) | |
Company Licenses | | | 4.10(b) | |
Company Material Contract | | | 4.09(a) | |
Company Parties | | | 8.03(c) | |
Company SEC Documents | | | 4.06(a) | |
Company Special Committee | | | Recitals | |
Company Stockholder Meeting | | | 6.04(c) | |
Compensatory Award Fund | | | 3.02(a) | |
Confidential Information | | | 4.13(d) | |
Data Protection Obligations | | | 4.10(d) | |
Term
|
| |
Section
|
|
Delaware Secretary of State | | | 2.02(a) | |
DGCL | | | Recitals | |
Dissenting Share | | | 3.06 | |
DTC | | | 3.02(d) | |
DTC Payment | | | 3.02(d) | |
Effective Time | | | 2.02(a) | |
End Date | | | 8.01(b) | |
Enforceability Exceptions | | | 4.02(a) | |
Enforcement Expenses | | | 8.03(g) | |
Equity Commitment Letter | | | 5.08 | |
Exchange Fund | | | 3.02(a) | |
Executive Officers | | | 6.01(a)(vi) | |
Extension Date | | | 8.01(b) | |
FCC Application | | | 6.03(a) | |
Gato | | | Recitals | |
Gato Shares | | | Recitals | |
Go-Shop End Date | | | 6.02(a) | |
Governing Documents | | | 6.07(a) | |
Guarantors | | | Recitals | |
Guaranty | | | Recitals | |
HMTV DTC | | | Recitals | |
Holdings LLC | | | Preamble | |
Indemnification Agreement | | | 6.07(a) | |
Insurance Policies | | | 4.14 | |
LLC Act | | | Recitals | |
LLC Certificate of Merger | | | 2.02(b) | |
LLC Merger | | | Recitals | |
LLC Merger Effective Time | | | 2.02(b) | |
Malicious Code | | | 4.13(f) | |
Material Customer | | | 4.21(a) | |
Material Supplier | | | 4.21(c) | |
Merger | | | Recitals | |
Merger Communication | | | 6.06 | |
Merger Consideration | | | 3.01(a) | |
Merger Litigation | | | 6.09 | |
Merger Sub 1 | | | Preamble | |
Merger Sub 2 | | | Preamble | |
Merger Subs | | | Preamble | |
Mergers | | | Recitals | |
Multiemployer Plan | | | 4.16(c) | |
New Plans | | | 6.20(b) | |
Notice of Adverse Recommendation Change | | | 6.02(e)(i) | |
Term
|
| |
Section
|
|
Notice of Intervening Event | | | 6.02(e)(ii) | |
Old Plans | | | 6.20(b) | |
Option Consideration | | | 3.05(a) | |
Parent | | | Preamble | |
Parent Liability Limit | | | 8.02 | |
Parent Parties | | | 8.03(e) | |
Paying Agent | | | 3.02(a) | |
Payoff Documentation | | | 6.16(a) | |
Payoff Indebtedness | | | 6.16(a) | |
Plan | | | 4.16(a) | |
Proxy Date | | | 6.04(c) | |
Proxy Statement | | | 6.04(a) | |
Real Property Leases | | | 4.12(b) | |
Reimbursement Payment | | | 8.03(b)(iv) | |
Schedule 13E-3 | | | 4.03 | |
Security Incident | | | 4.10(f) | |
Special Committee Financial Advisors | | | 4.02(b) | |
Supporting Stockholders | | | Recitals | |
Surviving Corporation | | | 2.02(a) | |
Surviving LLC | | | 2.02(b) | |
Terminating Company Breach | | | 8.01(e) | |
Terminating Parent Breach | | | 8.01(f) | |
Trade Control Laws | | | 4.10(i) | |
Voting and Support Agreement | | | Recitals | |
Stockholder
|
| |
Stockholder Shares
|
|
Gato Investments LP | | | 15,744,913(1) | |
HWK Parent, LLC | | | 0(2) | |
|
|
| |
|
|
Exhibit 107
Hemisphere Media Group, Inc.
Table 1: Transaction Valuation
Proposed Maximum Aggregate Value of Transaction |
Fee Rate | Amount of Filing Fee |
||||||||||
Fees to be Paid | $ | 284,001,497.43 | (1 | ) | .0000927 | $ | 26,326.94 | (2 | ) | |||
Fees Previously Paid | $ | 0 | $ | 0 | ||||||||
Total Transaction Valuation | $ | 284,001,497.43 | ||||||||||
Total Fees Due for Filing | $ | 26,326.94 | ||||||||||
Total Fees Previously Paid | $ | 0 | ||||||||||
Total Fee Offsets | $ | 0 | ||||||||||
Net Fee Due | $ | 26,326.94 |
(1) | Aggregate number of securities to which transaction applies: |
As of June 23, 2022, the aggregate number of shares of common stock to which this transaction applies is 40,848,678, which consists of (a) 20,827,861 shares of Class A common stock, par value $0.0001 per share, entitled to receive the per share merger consideration of $7.00; (b) 19,720,381 shares of Class B common stock, par value $0.0001 per share, entitled to receive the per share merger consideration of $7.00 and (c) 105,000 shares of Class A common stock underlying stock options with exercise prices below $7.00.
(2) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): Estimated solely for the purposes of calculating the filing fee, the underlying value of the transaction was calculated based on the sum of (a) the product of 20,827,861 shares of Class A common stock and the per share merger consideration of $7.00; (b) the product of 19,720,381 shares of Class B common stock and the per share merger consideration of $7.00 and (c) 105,000 shares of Class A common stock underlying stock options with exercise prices below $7.00 per share multiplied by $1.56 (the difference between $7.00 and the weighted average exercise price of $5.44 per share). In accordance with Section 14(g) of the Securities Exchange Act of 1934, as amended, the filing fee was determined by multiplying the sum calculated in the preceding sentence by .0000927. |