Is the company that has been privately owned for more than a decade, and its investors currently seeking at least a partial exit that formerly might have come via an initial public offering?
According to media reports Univision Communications announced on Wednesday, July 3, 2019, that because the U.S. Hispanic audience “represents one of the very few certain growth opportunities in today’s media, it will entertain offers from potential buyers.
Univision, the Spanish-language broadcaster announced it has engaged Morgan Stanley, Moelis & Co. and LionTree as financial advisors as its board of directors reviews “strategic options for the company.”
Univision has been privately owned for more than a decade and investors, like Saban Capital Group, Madison Dearborn Partners and Providence Equity Partners, have been seeking at least a partial exit that formerly might have come via an initial public offering.
Univision gave up on its IPO efforts on a few occasions and 16 months ago it replaced its CFO. At the end of 2018, CEO Randy Falco retired early and was replaced by Vince Sadusky.
Univision was hoping an IPO might have valued the company at $20 billion, and it had in 2017 turned down an offer of up to $15 billion from John Malone, who controls Lionsgate, Starz, Sirius XM Radio and other media assets.
While Univision under Falco had been acquiring English-language assets like the Onion, Lifehacker, Deadspin and Jezebel, under Sadusky, Univision has shed those subsidiaries.
The Wall Street Journal, which first reported the news of Univision’s interest in selling, notes that its owners purchased the firm for $13.7 billion in 2006 and the company had $7.4 billion in debt on its books at the end of 2018.
Sadusky said, “Univision is strategically, operationally and financially strong, having refocused on serving our core consumers, as well as our advertising and distribution partner.
“The current environment favors scale and cross-platform offerings, and we believe those major media companies that fail to recognize and capitalize on this unique opportunity in Spanish-language media will be left behind,” Sadusky added.
… that the coveted U.S. Hispanic demographic, where Univision dominates, is expected to grow from 57 million to 77 million by 2030.” — Univision stated
PHOTO: Vincent Sadusky, CEO, Univision Communications