This effort seems to have not produced any positive results or a sale.
According to the New York Post, Inside Radio and LA Times, the company is using the resources of Morgan Stanley, Moelis & Co. and LionTree bank to float an auction of Univision radio, television and internet assets.
According to the New York Post, Univision rejected a bid recently by cable tycoon John Malone for about $12 Billion, and currently the company’s perceive value is between $8 - $10 Billion. This is far bellow the original purchase price Broadcast Media Partners, a consortium of five private equity firms, including Madison Dearborn Partners, Providence Equity Partners, Saban Capital, TPG Global and Thomas H. Lee Partners north of $12 billion.
One thing is for sure. They purchase Univision at a high price including debt.
Was the urge or neccesity by the investors to be part of this growing phenomena of the US Hispanic Market too good to be true at the agreed upon price or was Jerry Perenchio a great salesman? Your call.
According to Industry Insiders, a failure by Univision to sell, merge or auction the company for equal or more than the original investment would be a black eye for the industry as a whole.
Thus, potentially portraying a slow down of the advertising and marketing to US Hispanics industry. No to mention, that Univision competitors (Telemundo) have gained audience and advertiser traction. Telemundo has landed several programming blows to Univision as of lately having not only the rights to the Olympics (next year is an Olympic year), but also out bidding Univision for the World Cup Soccer rights, impacting Univision audience and sales results. Telemundo has also brought forth an interesting programming package that has attracted several audience segments.
Others Industry Insiders believe the sale of using as a whole or preferably in parts is blessing in disguise to dismantle a once perceived monopoly in delivering US Hispanic Consumers and allowing more ownership fragmentation to deliver the complex US Hispanic audiences.
For many decades, Univision operated as the King of the Hill. They were considered to be very arrogant, pompous, only we can do the job mentality (calling themselves the McKinsey & Company of the Hispanic Market), a Buy-US-Only mentality to reach US Hispanic consumers that permeated their branding efforts, salesforce, public relations efforts and corporate attitude.
Some fault the cavalcade of non-Hispanic mainstream television, investment and other type of executives that clashed with many of the company's Hispanic executives in regards to direction, branding, knowledge and the understanding of the audience. You decided if their strategy has worked. Did they misread the audience, the market environment, the competition, the growth strategy?
Competition is always good; it brings you back to earth and requires you to adapt to succeed. Hopefully during this course or strategy to become more nimble, user friendly and in-tune with your audience and market you do not commit grave mistakes that impact your bottom line, your revenues, you're company moral and your future outlook - sales, merger and auction capabilities.
To read New York Post article, CLICK HERE
To read LA Times article, CLICK HERE.
To read Inside Radio article, CLICK HERE.