Univision For Sale
Feb 10, 2006 1:55:51 GMT -5
Post by 🅳🅸🆂🅲🅾 on Feb 10, 2006 1:55:51 GMT -5
It's Official: Univision Is On The Block
Feb. 08, 2006
By Tony Sanders
The early morning press reports advanced the story of a possible sale of Univision, and the late-afternoon announcement by the company confirmed it. The official announcement came shortly after 4 p.m. In that release, Univision said it has retained UBS Investment Bank as financial advisor to help the group explore “strategic alternatives.” The early morning reports gave Wall Street analysts and stock traders plenty of time to consider the news and to render their opinions on how high a price Univision might fetch in a sale of the company.
Univision shares were up $3.66, to close at $34.20, but Wall Street analysts expect the stock to go higher.
Merrill Lynch’s Jessica Reif Cohen thinks the target price is $40 per share, or $5.80 above the stock's closing price today (Feb. 8) on the New York Stock Exchange. “We believe our $40 target could be easily achievable in a sale,” Reif wrote in a report published this afternoon. Her expectation is that “private equity investors are the most likely bidders for the asset,” since FCC ownership limitations would hinder bids from News Corp., CBS and Viacom. Disney and Time Warner weren’t seen as likely bidders either, if only because of Disney’s move “to emphasize content” and the recent moves by “activist shareholders” like Carl Ichan who want Time Warner to go through its own divestitures.
Among Univision’s different sectors is Univision Radio,which owns and/or operates 69 radio stations in 16 of the top 25 U.S. Hispanic markets and 4 stations in Puerto Rico.
The Univision Music Group includes Univision Records, Fonovisa Records, and a 50% interest in Mexico-based Disa Records labels as well as Fonomusic and America Musical Publishing companies.
www.billboardradiomonitor.com/radiomonitor/news/business/top_news/article_display.jsp?vnu_content_id=1001994088
Feb. 08, 2006
By Tony Sanders
The early morning press reports advanced the story of a possible sale of Univision, and the late-afternoon announcement by the company confirmed it. The official announcement came shortly after 4 p.m. In that release, Univision said it has retained UBS Investment Bank as financial advisor to help the group explore “strategic alternatives.” The early morning reports gave Wall Street analysts and stock traders plenty of time to consider the news and to render their opinions on how high a price Univision might fetch in a sale of the company.
Univision shares were up $3.66, to close at $34.20, but Wall Street analysts expect the stock to go higher.
Merrill Lynch’s Jessica Reif Cohen thinks the target price is $40 per share, or $5.80 above the stock's closing price today (Feb. 8) on the New York Stock Exchange. “We believe our $40 target could be easily achievable in a sale,” Reif wrote in a report published this afternoon. Her expectation is that “private equity investors are the most likely bidders for the asset,” since FCC ownership limitations would hinder bids from News Corp., CBS and Viacom. Disney and Time Warner weren’t seen as likely bidders either, if only because of Disney’s move “to emphasize content” and the recent moves by “activist shareholders” like Carl Ichan who want Time Warner to go through its own divestitures.
Among Univision’s different sectors is Univision Radio,which owns and/or operates 69 radio stations in 16 of the top 25 U.S. Hispanic markets and 4 stations in Puerto Rico.
The Univision Music Group includes Univision Records, Fonovisa Records, and a 50% interest in Mexico-based Disa Records labels as well as Fonomusic and America Musical Publishing companies.
www.billboardradiomonitor.com/radiomonitor/news/business/top_news/article_display.jsp?vnu_content_id=1001994088