Los Angeles – In the months since Univision Communications Inc. put itself on the market, the burning question hasn’t been whether anyone would be interested in acquiring the top Spanish-language broadcaster in the U.S., but how much would they be willing to pay.
Univision may find out as early as today, when at least two investor groups that have been exploring a buyout of the Los Angeles-based media conglomerate are expected to submit initial bids.
At stake is control of a media powerhouse that holds the dominant share of U.S. Hispanic TV and radio audiences.
Univision operates three television networks – Univision, TeleFutura and Galavision – more than two dozen television stations, a recorded-music division, an Internet portal and the largest group of Spanish-language radio stations.
In 2005, Univision posted a profit of $187.2 million, or 54 cents per share, compared with $255.9 million, or 72 cents per share, in 2004.
Two groups have emerged as likely bidders. One consists of two of Univision’s largest shareholders and programming suppliers – Mexican media giant Grupo Televisa SA and Venezuelan broadcaster Venevision. They teamed up to explore a bid with five private equity firms: Bain Capital Partners LLC; Blackstone Management Associates V LLC; Carlyle Investment Management LLC; Cascade Investment LLC; and Kohlberg Kravis Roberts & Co. LP.
A second investor group has been widely reported to include Los Angeles-based media mogul Haim Saban and private equity firms Madison Dearborn Partners, Thomas H. Lee Partners LP, Providence Equity Partners Inc. and Texas Pacific Group.
