June 27, 2006 In Late Twist, Univision Accepts Bid By ANDREW ROSS SORKIN NY Times
http://www.nytimes.com/2006/06/27/business/media/27deal.html?ei=5094&en=7eeb059703512230&hp=&ex=1151467200&partner=homepage&pagewanted=print The board of Univision Communications, the nation's largest Spanish-language broadcaster, agreed to sell the company last night for $11 billion to a private equity consortium, people involved in the negotiations said. Univision's directors approved the sale at a meeting in Los Angeles, and both sides were scrambling to sign the agreement so that it could be announced this morning. At $11.1 billion or $36.25 a share, the sale is less than the $40 a share that Univision had originally hoped to receive when it put itself up for auction in February. Though the price was less than anticipated, it remains one of the highest multiples paid for a media company in recent history. The sale of Univision, known for its telenovelas, or soap operas, and its coverage of the World Cup soccer tournament, is a surprise twist in a long-running auction that only last week appeared on the verge of collapse. The deal would put Univision in the hands of a group that includes the billionaire investor Haim Saban. The group also includes four private equity firms Madison Dearborn Partners, Providence Equity Partners, the Texas Pacific Group and Thomas H. Lee Partners with stakes in business like Metro-Goldwyn-Mayer and Warner Music. With the agreement, the consortium seems to have topped a rival group led by Grupo Televisa, the Mexican broadcast giant, which had been expected to win the auction. Univision is the ultimate media juggernaut in the rapidly growing Latino market in the United States, a segment worth some $480 billion in annual buying power. It is the fifth-largest television network in the country behind Fox, reaching some 98 percent of Spanish-speaking households through its 62 TV stations, more than 90 affiliate stations and more than 2,000 cable affiliates. In addition to the network, which dwarfs Telemundo, a unit of General Electric's NBC, Univision also owns the nation's largest Spanish language radio broadcaster, music company and online operations. The sale would mean that Univision would end its association with its biggest shareholder and chairman, A. Jerrold Perenchio, 75, a reclusive onetime Hollywood talent agent who saw the potential for Spanish-language broadcasting in 1992, when he bought the company for only $500 million. An agreement to buy Univision would be a coup for the equity consortium. Less than a week ago, the group made an opening bid of $35.50 a share that was rejected out. Indeed, the group had been expected to drop out of the auction entirely. But after the Televisa-led group made an offer of $35.75 a share, much lower than Univision or investors had been expected, the private equity consortium returned over the weekend with an offer of $36.25. The Televisa-led group which includes Bill Gates's private equity vehicle, Cascade Investments, and Bain Capital had suffered several blows earlier in the week when four of its backers dropped out of the auction, worried about the price. The near collapse of the Televisa-led group was one of the first times that consortium deals when many investors come together have so publicly displayed the friction that often emerges within these teams. The sale could face scrutiny in Washington because Hispanic lobbying organizations are expected to mount campaigns for Univision to have a Hispanic owner. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
