Broadcasting Behemoth Univision Sold to Private Investors

In a move that is sure to send shockwaves through the Hispanic media industry, Univision's board of directors announced Tuesday that the nation's largest broadcaster had been sold to a group of private investors for $ 12.3 Billion. The purchasing group will also assume an estimated $1.4 Billion in debt. News of the sale sent stock prices soaring 7% to $36.25 a share.

In a statement, Grupo Televisa, who had also submitted a bid for Univision, stated their “disappointment” at having been passed by. However, some such as Phil Remek of Guzman & Co., think that Televisa might be better off ending up where they did:

“The Univision acquisition is quite a risky venture. Typically, private equity groups invest in underperforming, undervalued assets. Except for a dip last year, Univision has traditionally been fully valuated, so in order for them to post any big gains they are going to have to exhibit some real growth, and I just don't see where that's going to come from.”

Guzman speculates that Televisa might consider doing more to develop the content side of things for their digital platform, such as launching a Spanish-language community site.

Another possibility is that it will continue its strategy of expanding its print operations by developing licensing deals for major titles, or introducing some new titles on its own.