Univision could be exploring a sale
AL LEWIS
Univision Communications Inc. announced the company is reviewing “strategic options” as it considers new paths for growth, a sign the Spanish-language media giant could be contemplating a potential merger or acquisition.
Noting that the U.S. Hispanic market is poised for enormous growth, the Miami-based company’s board of directors said the time is right for the company to capitalize on that opportunity.
“As the last independent broadcast media company in the U.S., a market where scale and strength matter, Univision has the fundamentals for continued growth on its own or with a partner,” the board said in a July 3 news release.
The company has retained Morgan Stanley & Co. LLC, Moelis & Company LLC and LionTree LLC as financial advisors, the news release said.
Rosemary Mercedes, chief communications officer for Univision, said the company is exploring several options butshe could not comment on whether the company could sell.
“It’s too early to speculate on what the decision will be,” she said.
A leading source of Spanish-language news, sports and entertainment, Univision owns or operates 65 television stations in major U.S. markets and Puerto Rico.
The nation’s Hispanic population is expected to rise from 57 million to 77 million by 2030, a demographic shift that Univision said will increase the demand for Spanish-language media.
“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,” Vince Sandusky, CEO of Univision, said in the news release.
Univision previously sought to diversify through investments in a series of media startups, including the English-language Gizmodo Media Group (GMG) umbrella. In April, Univision sold GMG and The Onion, in which Univision owned a majority stake, to private equity firm Great Hill Partners.