Univision Begins Search For New CEO

Univision Communications Inc.’s board is girding to search for new leadership and is undertaking a business review that could lead to large cost cuts, people familiar with the matter said, on the heels of the Spanish-language broadcaster canceling its initial public offering.

Chief Executive Randy Falco, 64, recently told the board he would like to retire at the end of 2018 when he will turn 65, said Haim Saban, chairman of the board, in a statement.

The Wall Street Journal reported earlier Wednesday that the board was considering new leadership after Mr. Falco raised the prospect of retiring early.

“We at the Board of Univision have reluctantly agreed to Randy’s wishes out of respect and the high regard we have for him as a partner,” Mr. Saban said. Mr. Saban has praised Mr. Falco for diversifying the company, improving its finances, reducing debt and amplifying Univision’s political involvement as a voice for Hispanic America.

Randy Falco

Falco’s accelerated exit is a surprise. In November, Univision extended Mr. Falco’s employment agreement for an additional two years, through January 2020. Some people familiar with the matter said that he had begun to lose favor with some on the board in recent months.

Falco spent three decades at NBC before arriving in 2011 at Univision, whose portfolio includes 17 broadcast, cable and digital networks and 120 local television and radio stations.

According to Deadline-Hollywood, the traditional programming business of Univision’s flagship broadcast network has come under assault by NBCUniversal’s Telemundo, whose shows have lately aimed for higher production values, longer running times and less reliance on the legacy telenovela approach. Telemundo even managed the once-unthinkable feat of beating Univision in the live/same day ratings on certain nights, though February sweeps turned out differently. At the same time, one notable move engineered by Falco was the acquisition of several high-profile digital brands, including The Onion and the Gizmodo Media sites (a group once led by Gawker).