Report: Univision Heads To Auction With Few Suitors

In the middle of last month, the Spanish-language TV network Univision quietly gathered a select group of prospective suitors in New York as it sought a price tag north of $10 billion, sources told The NY Post.

But after sifting through more than 100 pages of confidential financial information, the group of media companies and buyout firms appears to have taken a pass, according to a source with direct knowledge of the situation.

Now, Univision is in “the very early stages” of a formal auction process with a “strict timetable” that’s being run by Morgan Stanley, Moelis & Co. and LionTree, an insider said. The banks, however, haven’t set a bidding deadline, sources said.

In the coming weeks, prospective bidders will face a tough question: As Univision tries to wean itself from tear-jerking soap operas and game shows hosted by women in tight dresses, can it remake itself into a millennial-focused powerhouse that can compete with online rivals like Netflix?

However the cliff-hanger pans out, most observers say one thing is clear: Cable-TV tycoon John Malone won’t be matching a $12 billion takeover offer he made two years ago — and Univision will be lucky to get the $10 billion it’s asking for.

Indeed, many observers reckon that the network, if it sells, is more likely to fetch a modest premium to its $7.5 billion debt load, which itself is a healthy multiple of the company’s estimated $1 billion in yearly cash flow.

The Miami-based network has been scrambling to update its programming, giving women more powerful roles and remaking old telenovelas with A-list movie actors. Meanwhile, however, it just sold its digital media unit, Gizmodo, to Great Hill Partners, and doesn’t have a clear online strategy to replace it.

Five years ago, Univision’s flagship network attracted an average of 3 million eyeballs in prime time, according to Nielsen. During the current season, Univision’s prime-time viewership was 1.3 million.