Is Univision Communications Inc. worth $20 Billion?
June 24, 2014
Over the last couple of weeks, we have received calls from industry professionals and media trade outlets alike asking us if Univision Communications Inc. is worth the $20 Billion price tag.
The questions range from professionally asked questions on the validity of the the demographic group, their business models, their ratings and the future of the Industry. Other questions range from skepticism and incredulity on the gall of asking for $20 Billion for a Hispanic focused group of companies.
We always choose not to comment to mainstream press, since we believe our views are to be expressed on HispanicAd.com.
Here it goes …….
Yes, the $20 Billion asking price is steep and includes a large portion of company debt that must be absorbed.
On the other hand, the opportunity.
Having access to millions of television viewers, radio listeners and online users not available readily on mainstream media, what is that worth?
Some might say that the cost per person might be exorbitant. Yet, we are talking about having access to a large portion of the majority of tommorow’s US population in one company. What is this audience worth 5, 10, 15, 20 years down the road?
Don’t be a hater, but a promoter of our Industry. On any given price you cannot go up, but always come down. $20B is a good starting point.
We as an Industry should hope that they do get their asking price, since it will ensure a future for many of our professionals, agencies and vendors that service our Industry. They will need more experts to manage the growth of the future opportunity in targeting US Hispanics.
This also helps set the valuation for Telemundo and other companies in our Industry above yesteryear’s valuation. Possibly yours.
So with that said, I hope they get it.
Eugenio (Gene) Bryan
CEO
HispanicAD.com – serving the US Hispanic advertising, marketing & media professional
HispanicMediaSalesInc.com – Thought Leadership for the US Hispanic Ad, Marketing, Media and PR pros
