Debt Hampers Univision's Curb Appeal

Los Angeles billionaire Haim Saban and his four private equity partners are trying to unload their stakes in Univision Communications, the nation's biggest Spanish-language broadcaster. The media giant is seen as a jewel on Wall Street because of the growing importance of Latinos in the U.S. market.

The LA Times reports the broadcast giant has been knocking on the doors of deep-pocketed buyers, including CBS Corp. and Time Warner Inc. So far, Univision hasn't gotten the nibbles its owners have been looking for.

The reason: Potential buyers are balking at a $20-billion price tag for a company weighed down by $9 billion in debt.

Analysts point out that Univision could be a big catch for a company looking to expand in Spanish-language media. Univision boasts two broadcast TV networks, including the nation's fifth-largest that draws more than 3 million viewers each night. It also owns more than 60 television stations, eight cable channels and a chain of popular radio stations.

The problem has been that Saban and his partners paid top dollar — $13.7 billion — when they bought the company at the top of the market in 2007. They also have struggled to pay down the mountain of debt, brought on by their leveraged buyout to take the company private.

Univision owners' first stop was to see CBS Corp. Chief Executive Leslie Moonves, figuring that he might jump at the opportunity to join together two dominant TV companies.

But Moonves scoffed at the price tag, people familiar with the talks said. He recognized that a proposed merger would invite investor scorn and regulatory headaches because both companies own dozens of TV stations. A combination would exceed the federal government's cap on station ownership.

Read More Now