Why Hemisphere Media Shares Are Soaring Today

Gato Investments LP agreed to acquire Hemisphere Media Group, Inc HMTV at $7 per share.
The offer price implies a premium of 86% over Hemisphere's closing share price on May 6, the last trading day before the announcement.
Hemisphere will become a private company wholly owned by Gato.
Hemisphere CEO Alan Sokol said, "As a private company, and with the support of Gato, we will have the ability to make long-term investments in content and innovation that will best serve Hemisphere's audiences."
Spanish-language media and content company TelevisaUnivision, Inc agreed to acquire Hemisphere Media-owned HMTV DTC, LLC's U.S. streaming platform Pantaya, LLC for Spanish-language movies and series in exchange for cash plus certain Puerto Rican radio assets, including WKAQ AM and KQ105 FM currently owned by TelevisaUnivision.
Sokol added: "Pantaya will flourish under TelevisaUnivision's ownership. Given the highly competitive video content market environment, the streaming service is best positioned as part of an organization that can provide it with the resources and investment it needs to scale and grow. In addition, Hemisphere's acquisition of certain TelevisaUnivision Puerto Rican radio stations, including WKAQ AM and KQ105 FM will be an ideal complement to WAPA, Puerto Rico's leading broadcast network."
Price Action: HMTV shares traded higher by 78.90% at $6.75 on the last check Monday.