Now that Tribune is seeking to sell its 50% stake in La Opinión to the Lozano family, UBS bankers, retained by the Lozano family, are busy estimating the value of La Opinión. “As a private company, we do not release our financial data,” Francisco Lozano, national advertising sales manager

at La Opinión, tells Portadatm. However, the value of La Opinión can be estimated through an, admittedly, back of the envelope calculation. La Opinión sells for a newsstand price of US $0.38 including taxes. Assuming a revenue of US $0.20 per copy (after the margin for retailers), La Opinión derives annual copy sales of US $9.172 million. [For simplicity's sake, we will exclude subscription sales]. Assuming a 75% advertising revenue and a 25% copy sales revenue split, we derive annual advertising revenues of US $27.518 million and total sales of US $36.691 million. Through direct mail programs and other products, sales can be rounded up to US $40 million. Assuming an EBITDA margin of 20%, La Opinión has annual earnings before interest tax depreciation and ammortization of US $ 8 million. Publicly quoted newspaper companies tend to trade at 10 times EBITDA. In the case of La Opinión, this multiple can be increased to 13 times, due to the growing Hispanic media market and the control premium of a 50% stake. By applying a 13 times EBITDA multiple, we get a total value for La Opinión of US $104 million. Hence the value of a 50% stake is US $52 million.

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