Univision Exploring ‘Strategic Options’
• Univision Communications Inc. confirmed that its Board of Directors is actively reviewing strategic options for the company. As Variety‘s coverage stated, “Univision’s move is not a surprise. The company, owned by a group of private equity players led by Haim Saban, has struggled in recent years to adapt in a fast-changing media landscape.”
A statement from the Univision Board read, in part, “After a successful year under the leadership of our new management team, including a complete refocus on our core Spanish-language media business, it is abundantly clear that Univision’s strategic value has never been greater.” That “refocus” included the company’s recent divesture of multicultural news and lifestyle sites like The Root, Fusion, The A.V. Club and The Onion, which were acquired under previous management. In April, Univision struck a deal to sell most of that digital portfolio to private equity firm Great Hill Partners.
The statement continues, “The U.S. Hispanic audience represents one of the very few certain growth opportunities in today’s media marketplace, and Univision is ideally positioned… As the last major 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 – and after careful consideration, the Board and management team have concluded the time is right to explore strategic options.”
Vince Sadusky (left),Chief Executive Officer of Univision, said, “Univision is strategically, operationally and financially strong, having refocused on serving our core consumers, as well as our advertising and distribution partners. Over the past year, Univision has gained momentum as it has divested non-core assets; strengthened programming; secured long-term distribution deals and valuable sports rights; increased investment in news, sports, local, and digital offerings; and materially strengthened its balance sheet. 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.”
Univision has secured the services of Morgan Stanley & Co. LLC, Moelis & Company LLC and LionTree LLC as financial advisors to assist with the process.
