Wednesday, February 08, 2006

Univision for Sale

Today’s surprise news announcement came from Univision Communications Inc. They stated that its Board of Directors has decided to begin a process to explore strategic alternatives to enhance shareholder value, including but not limited to the raising of capital through the sale of securities or assets of the Company, a recapitalization, strategic acquisitions, and the combination, sale or merger of the Company with another entity. Don't count out anyone in this bidding process. Univision is the biggest catch there is in a red-hot sector, Hispanic media. Who might step up to make this purchase? Everyone who wants to be a bigger player in the US media landscape. If I were to speculate, I would focus on CBS, Time Warner, GE/NBC Universal and News Corporation. All except Time Warner would, at first glance, face ownership limit problems at the FCC not to mention that Time Warner is battling a break-up effort by Carl Icahn. But that is not an insurmountable problem. More on this as the detail become available. -SM

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