Who is Going to End Up Buying Univision? It is on the Market for Sale
Let the bids come in. Let them come for the media powerhouse that holds the dominant share of U.S. Hispanic television and radio audiences. The Los-Angeles-based media conglomerate is the top Spanish-language broadcaster in the U.S. The stakeholders of Univision will find out how much their brand name is worth. Any investors will want to go for the top Spanish-language network in the nation. To get an idea of its worth, just take a look at how many people prefer to watch its transmission of the 2006 World Cup games instead of watching -say ABC or any English-speaking stations. That is the cachet of Univision. The reporters and programs offered by the network connect with viewers.
Univision operates three television networks - Univision, TeleFutura and Galavision- more than two dozen television stations, a recorded music division, and Internet portal and the largest group of Spanish-language radio stations. Knowing how hot Univision is should make its stockholders, specially chief executive A. Jerrold Perenchio a very happy and very rich man. So far who are the interested parties? Univision's largest shareholder and programming supplier, Mexican media giant Grupo Televisa SA and Venezuelan broadcaster Venevision. These shareholders got together with five private equity firms: Bain Capital Partners LLC, Blackstone Management Associates V LLC, Carlyle Investment Management LLC; Cascade Investment LLC and Kohlberg Kravis Roberts & Co. LP. These foreign companies have to parter with US investors due to the fact that they are barred from owning more than 25% of any U.S. media company. The second group of investors includes Los Angeles-based media mogul Haim Saban and private equity firms Madison Dearborn Parteners, Thomas H. Lee Partners LP, Providence Equity Partners Inc. and Texas Pacific Group.
Now you can see which group has more cash to bid on Univision. I side with the first group. Those who want to pronosticate can line up with me.