Televisa says ready to sell Univision shares Wed Jul 5, 2006 11:31 AM ET
By Cyntia Barrera Diaz Reuters http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=ousiv&storyID=2006-07-05T153140Z_01_N05410304_RTRIDST_0_BUSINESSPRO-MEDIA-TELEVISA-UNIVISION-DC.XML MEXICO CITY (Reuters) - Mexican broadcaster Televisa on Wednesday said it was prepared to sell its stake in Univision to a private equity consortium, a move the company said would allow it to explore rival opportunities in the U.S. Hispanic media market. Televisa owns an 11.4 percent stake in Univision Communications Inc. and had the option of remaining an investor after the company is taken private for about $12.3 billion by a group of investors including U.S. media tycoon Haim Saban. The announcement marks a shift for Televisa, which had long sought to boost its stake in Univision, the dominant U.S. Spanish-language broadcaster. Televisa had led its own group of investors bidding for Univision last month but was edged out by Saban and four private equity partners. "Televisa is prepared to discuss with you (the consortium) a sale of its shares of Univision as soon as possible based on the present value of the price per share set forth in the merger agreement," Grupo Televisa said in a filing with the U.S. Securities and Exchange Commission. Televisa said the sale of its stake in Univision would release it from a 1996 Participation Agreement with Univision chairman and controlling shareholder Jerrold Perenchio that barred it from exploring rival business openings in the United States. "If it is not bound by the Participation Agreement, Televisa will be able to engage in new business opportunities in the growing U.S. Hispanic marketplace related to its programming or otherwise without offering Univision participation in such opportunities," Televisa said in a separate statement. Televisa's management has tried to buy a U.S. broadcaster for over 25 years. But the company could explore other options for the Hispanic market outside broadcast television. Analysts think publishing and Internet are the two most viable businesses for the Mexican company outside broadcasting. Editorial Televisa, its publishing arm headquartered in Miami, has 82 titles in stock ranging from fashion glossies to celebrity magazines. Televisa could also boost its presence, particularly among the younger audiences, with new online services including music downloads, chat rooms, and exclusive content using its army of actors, singers and musicians. Televisa remains bound by a long-term agreement to supply the bulk of Univision's television programming until 2017 and it was not clear what other options it could pursue. At the same time, the two companies have disputed the rights to air Televisa programming over the Internet in the United States with the expiration of a provision barring both sides from U.S. Web programming on December 19. Officials at Univision and Televisa could not immediately be reached for comment. The consortium buying Univision also includes Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group and Thomas H. Lee Partners. Univision shares fell 37 cents or 1.09 percent to $33.56 on the New York Stock Exchange. Televisa's local shares dropped 5.90 percent to 44 pesos while its American Depositary Receipts retreated 77 cents or 3.76 percent to $19.69. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list medianews@twiar.org To unsubscribe send an email to: [EMAIL PROTECTED]
