US-based Spanish-language broadcasting company Univision has agreed to sell a 64 per cent majority stake to investment companies Searchlight Capital Partners and ForgeLight.
Though financial details of the transaction have not been disclosed, financial research firm CreditSights expects the two to pay a combined US$800 million. Such a deal would value Univision at less than US$10 billion, with that figure including a debt of US$7.4 billion.
Currently, Univision’s sports offering across its networks includes rights to the Uefa Champions League, Concacaf competitions including the Gold Cup, Major League Soccer (MLS), the National Football League (NFL), and Formula One.
Among the sellers with a stake in Univision include private equity firms Madison Dearborn Partners, Providence Equity Partners, Saban Capital Group, TPG Capital, and Thomas H Lee Partners.
Grupo Televisa, the Mexican mass media company, will retain a 36 per cent stake in Univision. Its agreement to provide Spanish-language video content will also remain in effect and will not expire unless Televisa voluntarily sells down a significant portion of its ownership stake, at which point the agreement would remain in place for an additional seven and a half years.
Upon completion of the deal, expected later this year, Wade Davis, founder of ForgeLight and former chief financial officer of Viacom, will step up as Univision’s new chief executive.
CreditSights’ valuation means Haim Saban, owner of Saban Capital Group and who led the group to purchase Univision in a leveraged buyout worth US$13.7 billion in 2007, will apparently receive a far lower payout.
The broadcaster’s declining value highlights a testing few years, going back to 2015 when it first attempted to go public only to scrap the plans due to concerns over media stocks. Univision also rejected a US$12 billion bid from Discovery in 2017 ahead of a second attempt at an initial public offering (IPO) the following year. This too was abandoned after it failed to reach the reported US$20 billion valuation needed for investors to leave with a profit.
Despite this, current Univision chief executive Vince Sadusky said in a statement that the broadcaster was a ‘reenergised and refocused company’, adding that the sale ‘marks the start of an exciting new chapter with partners that recognise the excellent position Univision is in’.
Saban, who is also chairman of the Univision board, added that they were ‘confident’ they had found the right path forward with Searchlight and ForgeLight.
‘Our goal in launching a comprehensive strategic review was to ensure that Univision was best positioned for future growth and success, and we believe this is the ideal outcome,’ he added.
Searchlight Capital and ForgeLight will acquire 64% in the US Spanish-language broadcaster.
US-based Spanish-language broadcasting company Univision has agreed to sell a 64 per cent majority stake to investment companies Searchlight Capital Partners and ForgeLight.
Though financial details of the transaction have not been disclosed, financial research firm CreditSights expects the two to pay a combined US$800 million. Such a deal would value Univision at less than US$10 billion, with that figure including a debt of US$7.4 billion.
Currently, Univision’s sports offering across its networks includes rights to the Uefa Champions League, Concacaf competitions including the Gold Cup, Majaor League Soccer (MLS), the National Football League (NFL), and Formula One.
Among the sellers with a stake in Univision include private equity firms Madison Dearborn Partners, Providence Equity Partners, Saban Capital Group, TPG Capital, and Thomas H Lee Partners.
Grupo Televisa, the Mexican mass media company, will retain a 36 per cent stake in Univision. Its agreement to provide Spanish-language video content will also remain in effect and will not expire unless Televisa voluntarily sells down a significant portion of its ownership stake, at which point the agreement would remain in place for an additional seven and a half years.
Upon completion of the deal, expected later this year, Wade Davis, founder of ForgeLight and former chief financial officer of Viacom, will step up as Univision’s new chief executive.
CreditSights’ valuation means Haim Saban, owner of Saban Capital Group and who led the group to purchase Univision in a leveraged buyout worth US$13.7 billion in 2007, will apparently receive a far lower payout.
The broadcaster’s declining value highlights a testing few years, going back to 2015 when it first attempted to go public only to scrap the plans due to concerns over media stocks. Univision also rejected a US$12 billion bid from Discovery in 2017 ahead of a second attempt at an initial public offering (IPO) the following year. This too was abandoned after it failed to reach the reported US$20 billion valuation needed for investors to leave with a profit.
Despite this, current Univision chief executive Vince Sadusky said in a statement that the broadcaster was a ‘reenergised and refocused company’, adding that the sale ‘marks the start of an exciting new chapter with partners that recognise the excellent position Univision is in’.
Saban, who is also chairman of the Univision board, added that they were ‘confident’ they had found the right path forward with Searchlight and ForgeLight.
‘Our goal in launching a comprehensive strategic review was to ensure that Univision was best positioned for future growth and success, and we believe this is the ideal outcome,’ he added.
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