Univision Communications Inc., the US Hispanic-targeted media chain, confirmed that its board of directors is analyzing strategic options for the company.
By MiamiDiario Newsroom
Univision's board of directors stated that “following a successful year under the leadership of our new management team, including a complete refocusing on our core Spanish-language media activities, it is abundantly clear that Univision's strategic value has never been greater. The US Hispanic audience represents one of the few sure-fire growth opportunities in today's media market, and Univision is ideally positioned."
“We have the most-watched local news programming in all languages in many major markets, often outperforming the competition – the big four broadcast networks– in prime time and we have a sports franchise that is the best of its kind. This leadership position, along with the growing recognition that the Hispanic population drives significant growth in the US economy, makes Univision a unique media property.”
According to the press release, the demographic and economic traits of Hispanic consumers will generate an increase in media consumption and spending for many years, and we want Univision to be in the best position to capitalize on this historic opportunity.
The chain claims to have "the essentials to continuously grow on its own or with a partner and, after careful consideration, the board of directors and management team have concluded that the time is right to explore strategic options."
Vince Sadusky, CEO of Univision, said, “Univision is solid in strategic, operational and financial terms, after refocusing on serving our core consumers, as well as our advertising and distribution partners. During the last year, Univision gained momentum by liquidating non-core properties; reinforced programming; landed long-term distribution deals and valuable sports rights; increased investment in local, digital, news and sports products, and significantly improved its balance sheet. The current environment favors products of greater magnitude and on various platforms, and we believe that the large media companies that fail to recognize and take advantage of this unique opportunity in Spanish-language media will be left behind”.
Univision offers access to the US Hispanic demographic, which is projected to increase from 57 million to 77 million by the year 2030. With a GDP of $2.1 trillion – the equivalent of the seventh largest economy in the world – the Hispanic audience in the United States represents one of the few remaining growth opportunities for advertisers and distributors.
There is no guarantee about the timing and outcome of this analysis. Univision does not intend to disclose or comment on events related to this analysis until the board of directors completes its analysis or it is determined that further disclosure is appropriate or beneficial.
Univision has retained Morgan Stanley & Co. LLC, Moelis & Company LLC and LionTree LLC as financial advisors to assist in this process.
Source: Do business in Miami