MEXICO CITY (Reuters) -TelevisaUnivision, a Mexican-American media company that combines content from two of the largest Spanish-language broadcasters, will replace its chief executive, according to two sources with knowledge of the plan, with the shakeup expected as soon as Wednesday evening.
Davis will be terminated, according to one of the sources with knowledge of the decision, due to some company results that have lagged internal expectations.
"He lost the confidence of the U.S. side, the Mexican side and of the funds," the source said.
Davis, a former ViacomCBS executive who is based in the U.S., did not immediately respond to a request for comment.
Davis, who had been CEO since the joint venture was formed in 2021, will likely be succeeded by Daniel Alegre, a Mexican who most recently served as chief executive of non-fungible token (NFT) maker Yuga Labs, the sources said.
Alegre also previously worked at videogame maker Activision Blizzard and spent 16 years at Google, during which he opened offices for the tech giant across Latin America.
A board meeting to finalize the transition was expected to happen Wednesday evening or Thursday morning.
TelevisaUnivision is a joint venture between Televisa, Mexico's largest broadcaster, and U.S. Spanish-language broadcaster Univision. Davis oversaw the launch of streaming service ViX, which now has about 50 million global monthly active users and competes with Netflix Inc and Disney Plus.
Davis, who was hired to lead the newly formed company in 2021, had served as the CEO of Univision since Searchlight Capital Partners and ForgeLight, which Davis founded, completed their majority stake purchase of the network in 2020.
The SoftBank Latin America fund was one of TelevisaUnivision's original investors, alongside ForgeLight, a private equity firm, Google and The Raine Group.
TelevisaUnivision posted a 4% drop in profit to $1.61 billion in 2023. The company's debt stands at $9.8 billion, according to its second-quarter report.
The firm has, however, seen gains in total revenue and revenue from advertising in 2023 and so far in 2024, most of which has been driven by the Mexican market. Company officials had hoped for stronger gains in the U.S. market, the source said.
Davis would transition to the role of vice chairman and continue as a member of the board's executive committee, the sources said.
(Reporting by Cassandra Garrison; editing by Stephen Eisenhammer and Christian Plumb)