Transcripts

Univision Is Up For Sale

SUSIE GHARIB: Also up for sale these days, Univision. The biggest Spanish language broadcaster in the United States has put itself up for auction. But, as Scott Gurvey reports, the bids are not exactly rolling in.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: The behind-the- scenes struggle for control of Univision is worthy of any of the Telenovelas popular on Spanish-language television. This is the fastest- growing TV market in the United States, and Univision attracts about 80 percent of the audience. Analysts say that makes it an attractive buy, which could fetch as much as $13 billion, $40 a share. Mexico City based Televisa was considered to have the inside track, but yesterday it missed a bidding deadline set by Univision. Televisa needed American partners because U.S. Law prohibits foreigners from owning more than 25 percent of a domestic broadcaster. Televisa was apparently unable to come to terms with a consortium of American buyout firms. That left only one bid -- American billionaire Haim Saban (ph), leading another consortium. But that bid was reportedly rejected, coming in at only $11 billion, $35 a share. LELAND WESTERFIELD, MEDIA ANALYST, BMO CAPITAL MARKETS: Some of the private equity firms in each syndicate have dropped out along the way. In a smaller deal, you`d hardly notice; in this deal, very visible. Why? The multiples and the valuation are very high for this growth, unique growth asset. So some may be skittish about valuation.

GURVEY: Univision`s stock has been rising this year in anticipation of a ratings boost as a result of the popular World Cup, as well as a move to the Nielsen national TV index starting next year. That`s the index most national advertisers use when they place commercials.

TUNA AMOBI, MEDIA ANALYST, STANDARD & POOR`S: The attraction comes, in our opinion, from the demographics of the Spanish language segment. We think that, based on all the statistics, whether its the population growth or the disposable income or the growth in Spanish language advertising that we`ve seen, we believe the statistics support continued strong growth of the Spanish language media segment, and no company in our opinion is better positioned to benefit from this trend than Univision.

GURVEY: A spokesman for Televisa says it is still preparing a bid. But analysts say Univision may cancel the auction if it thinks the bids are too low. Analysts say that may not be bad for investors in the long run. Scott Gurvey, NIGHTLY BUSINESS REPORT, New York.