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Univision "sale"?
- Thread starter bucwhyl
- Start date
Whole thing. It is operated as a network.
Well, Televisa already has 40%. They are one of the world’s largest TV companies. If radio is spun off separately, Prisa from Spain, the owner of the largest radio group in the world, might be interested.
A small-ish radio company like Alpha that is having trouble digesting Digity, is not going to buy a company that recently turned down a $13.5 billion offer. This is primarily a TV play; radio is secondary.
As Univision’s CEO, Vince Sandusky, said, the company has put it's problems behind it and it is in a very attractive position for any investor. Ratings are back up, the unfortunate Isaac Lee era acquisitions are mostly gone and there is an improved core business focus.
The Hollywood Reporter, chiming in from Sun Valley today, says:
https://www.hollywoodreporter.com/n...moguls-will-debate-at-sun-valley-year-1223043
Who will buy Univision? The Spanish-language media company said June 3 it is for sale, and Haim Saban, a board member and investor, will no doubt be pitching the company as an acquisition target for a larger conglomerate while attending Sun Valley. Disney could make a viable suitor, says Jimmy Schaeffler of the Carmel Group, given its desire to poke holes in rival Comcast, which owns Telemundo. Plus, Hispanics are a fast-growing segment who already make up 20 percent of the U.S. population.
But Disney is still digesting its $71.3 billion acquisition of most of 21st Century Fox, so it might not have the appetite for Univision. Thus, Saban might have more luck with Shari Redstone, who is attending Sun Valley at a time when CBS and Viacom, both of which are controlled by her and her father, Sumner, are considering a merger, and some on Wall Street speculate the combination might still fall short as conglomerates grow their power, as did WarnerMedia when AT&T scooped it up for $108.7 billion, including debt. Adding Univision into the CBS-Viacom mix might be just what the doctor ordered.
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Mediafrog+
Walk of Fame Participant
I guess if Comcast can own both NBC and Telemundo, then Disney could own both ABC and Univision. Same with a CBS-Univision combo.
There would have to be some TV divestitures, unless ownership caps are relaxed. For instance in Houston KTRK is an ABC O&O, while Univision has KXLN and KFTH. Presumably the UniMas station (KFTH) would be spun off, although possibly with an operational agreement with its former owner.
There are some markets where a merger would result in four O&O’s.
There would have to be some TV divestitures, unless ownership caps are relaxed. For instance in Houston KTRK is an ABC O&O, while Univision has KXLN and KFTH. Presumably the UniMas station (KFTH) would be spun off, although possibly with an operational agreement with its former owner.
There are some markets where a merger would result in four O&O’s.
A lot of the speculation in the Hollywood Reporter reads like wishful thinking. It also assumes a radio spinoff, since none of the companies mentioned are interested in getting back into that business. That alone is a complicated problem, because radio companies don't want any more debt. My general sense is that Disney isn't really looking to buy any more TV stations. They are a content company, and they're looking at accumulating content, not expensive aging facilities.
As for CBS/Viacom, they are very confused. They have serious strategic planning & leadership problems. They really don't know what they want to do or be. Look how long they're taking to figure out how to handle this unification thing. They have no one who has a vision for where the company is going. So I wouldn't look to them to come up with the money needed to do this deal.
I really think Univision will be sold to a foreign investor. They're the only ones not afraid of debt.
As for CBS/Viacom, they are very confused. They have serious strategic planning & leadership problems. They really don't know what they want to do or be. Look how long they're taking to figure out how to handle this unification thing. They have no one who has a vision for where the company is going. So I wouldn't look to them to come up with the money needed to do this deal.
I really think Univision will be sold to a foreign investor. They're the only ones not afraid of debt.
One of the interesting things is the potential alliance of Televisa with a comparably large US company that wants its content. Televisa is the largest content producer in Latin America, and its library of past material is overwhelmingly larger than any other. They also have the rights to a huge portion of the "Golden Era" of Mexican Cinema films, numbering in the thousands (at one time, Mexico produced as many new movies as Hollywood) and of great appeal among Hispanics from the entire Hemisphere.
As companies put together content focused operations, a Televisa alliance could be key to Hispanic subscriptions.
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Apparently Televisa already has a relationship with both Telemundo and Univision, including a 5% stake in the latter. So alliances already exist.
Ownership is another issue, and it would be subject to FCC approval.
Y2kTheNewOldies
Walk of Fame Participant
Disney is off the list because they just taken over 20th Century Fox, the Redstones are also off the list because of the CBS/Viacom talks and Fox Corp are uncertain.
Univision would have to look into Cox Media as a reference like have an Apollo type investment group take over Univision?
Radiomusik
Frequent Participant
And what would happen to the Televisa networks in Mexico? Would Televisa be rebranded into Univisa or merge into all Univision? Or remain as Televisa for Mexico and Univision for U.S? What you mentioned about Grupo Prisa acquiring Uforia Univision Radio makes perfect sense to me. I guess all the Latino Mix flagship in the United States would be rebranded into Los 40. And all the Regional Mexican radio stations would be rebranded to Ke Buena.
If MVS acquires Univision Radio, the result would be,
Amor, Recuerdo, KLOVE, KQ to FM Globo
Que Buena, La Jefa, Zona MX to La Mejor
Latino Mix, La X, Mix to EXA FM
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Televisa is a heritage name in Mexico, and it operates various networks under that banner. There is no need to rebrand.
Televisa is the bigger company, so it is likely that the branding in Mexico would not change and the established Univision name in the US would not, either. Rebranding is generally a sign of failure. Neither operation even remotely qualifies as "failed".
Prisa does not routinely change brands on highly successful stations, with the only exception being that CHR stations that already exist are given the 40 (Principales) brand. Ke Buena is not likely, although in the US Univision has the service mark going back to KBNA in El Paso under TMS, the brand was not defended and there are many non-Univision users, starting in LA.
The "los 40 Principales" brand goes back to the original FM in Madrid back in '66 or '67. It has sentimental significance, but the current heads of Prisa are not part of that regime.
As to MVS (which likely does not have the strength to do a $1 billion plus deal) they would see that K-Love is a 40-year heritage brand. Globo is a tired Mexican brand that Joaquin Vargas used in the late 60's when he built a bunch of FMs when the band was not popular.
MVS is principally interested in TV and video now, not radio.
KQ in Puerto Rico is one of the most heritage brands in the world. The WKAQ brand goes back to the first Puerto Rican station in 1922. KQ as a CHR dates back to 1968 and has enormous equity in the market. It would not be rebranded with a very stale AC type name; "KQ" in Puerto Rico is, format-wise, a really a true CHR, not the slow rotation pseudo-CHR that Exa is.
La Mejor is a rather horrible name, used in Mexico because the good names were already taken.
Exa is an MVS brand, of course. The name has no meaning in the US, and its format has never worked on the US side of the border, such as El Paso, San Diego, etc. In part, that is because it is essentially a slow-rotation CHR playing mostly English music with Spanish announcing and commercials. In the US, CHR partisans like the better and faster rotations of each market's big English language CHR, and the EXA strategy does not work.
"Amor" is a much better name than Globo for today's listeners. It packs emotion, while "Globo" sounds like an old newspaper name. It is almost as bad as Vargas' original FMs that carried the Estéreo Rey name.
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Radiomusik
Frequent Participant
Exactly what I speculated. A complete waste of money if a rebrand would happen to any of the networks. Both sides of the border already has a very well established mark in Spanish-language television history. Despite you speculate PRISA could acquire Uforia Univision Radio stations. What changes could we see in terms of content and music in their current corresponding formats (Amor, Recuerdo, Que Buena, Zona MX, KQ, Latino Mix) once new owners take over?
Ah, memories of driving across the desert and into the Estereo Rey Mexicali coverage area. It sounded like someone got their hands on a Jam or TM Century jingle package, poorly translated some liners into English, and then hired the guy who announced the cut numbers on the jingle demo to voice the liners. English-language mid-chart stiffs, English-language jingles, and Spanish-language commercials. It was terrible radio, but I looked forward to hearing it every time I made the drive.
To circle back to your first point:
If it's working, why mess with the radio properties?
Today the Wall Street Journal is reporting that John Malone might be back in the hunt for Univision:
Univision's problems could provide a way for Liberty Media chief John Malone to buy it, a Wall Street Journal columnist suggests. The company's financial picture has deteriorated since Malone put in a bid in 2017, and other media giants are distracted with ongoing projects, the columnist explains.
Univision's problems could provide a way for Liberty Media chief John Malone to buy it, a Wall Street Journal columnist suggests. The company's financial picture has deteriorated since Malone put in a bid in 2017, and other media giants are distracted with ongoing projects, the columnist explains.
There is a few "La Mejor" stations operating here in the US already. There is also one Exa in Las Vegas (well, two if you count Ciudas Juarez/El Paso).
There is an Exa in Tijuana. Neither gets any kind of numbers in the US side ratings. Both are MVS stations, programmed out of Mexico City.
The Exa in Las Vegas barely gets a signal into the metro and has not met minimum reporting standards for the last 13 books.
Radiomusik
Frequent Participant
Latest from the LA Times, "Univision still has $7.5 billion in debt, and some possible buyers have much on their plate. Disney, for example, is busy trying to absorb much of Rupert Murdoch’s 21st Century Fox, a $71.3-billion deal that was completed in March. AT&T Inc. is under pressure to slash its enormous debt load after buying Time Warner for $85 billion. CBS is again flirting with buying Viacom. However, Liberty Media Chairman John Malone has been looking for properties to buy on the cheap. And Discovery may make another bid, though well below the $12-billion offer that Univision rejected just two years ago.
Another potential buyer is Televisa, but it is grappling with its own struggles in Mexico — and it would be happy to see Univision absorbed by a large U.S. media company, according to two knowledgeable people."
So far what I see it's between Liberty Media and Televisa.
https://www.latimes.com/business/ho...ision-for-sale-haim-saban-20190715-story.html
Another potential buyer is Televisa, but it is grappling with its own struggles in Mexico — and it would be happy to see Univision absorbed by a large U.S. media company, according to two knowledgeable people."
So far what I see it's between Liberty Media and Televisa.
https://www.latimes.com/business/ho...ision-for-sale-haim-saban-20190715-story.html
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In which case, what happens to radio?
Radiomusik
Frequent Participant
Latest on Univison Radio from Radionotas (Spanish-language radio publication):
Univision Radio could be the company's first sold business unit
The Univision strategic review process continues to progress, and with this, the sale of the company to a private company or simply the union with some other business unit continues.
Recently the CEO of the Hispanic media, Vincent Sadusky, has announced his desire that in case the sale is completed, it will be achieved together with the television and radio part, however, those media experts communication that they are observing the process, ensure that it is very likely that the division of Univision Radio will be sold first, for its 58 stations that they have in the United States.
It should be noted that a source close to the Univision sale process is that it ensures that some company executives are those who have begun to consider the sale separately of both the television business unit and the radio unit. However, now the challenge would be to convince the potential buyer that the sale would be separately. The business combination (radio and TV) dates back to 2002, when the media were acquired from Hispanic Broadcasting Corporations.
Since Vincent took over as CEO of the company, special emphasis has been placed on the Univision radio division, however, despite the changes, the earnings results of this division in the second period of 2019, showed a 5% decrease compared to the same period but in 2018. According to company executives, this decrease was due to the weak sale of commercials throughout the radio network.
Sadusky acknowledged that only he and 19 Univision board members share the idea of keeping business units together, he also said there are people who disagree about it.
The task of bringing bids to the Univision board now falls to JP Morgan and media brokers say they don't expect to see any quick action, noting that the company has been open for sale and exploring various options for the past five years.
Analysts have said that if a sale has not been achieved so far, it is because Sadusky prefers to keep all units together for purchase.
https://radionotas.com/2019/09/16/u...era-unidad-de-negocio-vendida-de-la-compania/
Univision Radio could be the company's first sold business unit
The Univision strategic review process continues to progress, and with this, the sale of the company to a private company or simply the union with some other business unit continues.
Recently the CEO of the Hispanic media, Vincent Sadusky, has announced his desire that in case the sale is completed, it will be achieved together with the television and radio part, however, those media experts communication that they are observing the process, ensure that it is very likely that the division of Univision Radio will be sold first, for its 58 stations that they have in the United States.
It should be noted that a source close to the Univision sale process is that it ensures that some company executives are those who have begun to consider the sale separately of both the television business unit and the radio unit. However, now the challenge would be to convince the potential buyer that the sale would be separately. The business combination (radio and TV) dates back to 2002, when the media were acquired from Hispanic Broadcasting Corporations.
Since Vincent took over as CEO of the company, special emphasis has been placed on the Univision radio division, however, despite the changes, the earnings results of this division in the second period of 2019, showed a 5% decrease compared to the same period but in 2018. According to company executives, this decrease was due to the weak sale of commercials throughout the radio network.
Sadusky acknowledged that only he and 19 Univision board members share the idea of keeping business units together, he also said there are people who disagree about it.
The task of bringing bids to the Univision board now falls to JP Morgan and media brokers say they don't expect to see any quick action, noting that the company has been open for sale and exploring various options for the past five years.
Analysts have said that if a sale has not been achieved so far, it is because Sadusky prefers to keep all units together for purchase.
https://radionotas.com/2019/09/16/u...era-unidad-de-negocio-vendida-de-la-compania/
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