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Univision IPO Details


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Univision IPO Brings New Wall Street Excitement

Univision_2013_logoUnivision, the most popular of the Spanish language stations in the United States, with nearly 9 million viewers per day,is having a banner year. Coming off of their historic topping of national giant, NBC of the lucrative 18-49 demographic at the first part of this year, the company is showing substantial growth while the rest of the market remains sluggish. While placing sixth overall, their meteoric growth is something many investors are making note of.

Reasons to Believe a Univision IPO Will Occur in 2014

With the recent success, many rumors are circulating about their recent talks with banks about taking the now private company public once more. In 2007, the network was acquired by Madison Dearborn Partners, Providence Equity Partners, TPG Capital, and Thomas H. Lee Partners for $12.3 billion. Private equity groups often buy companies such as Univision as an investment that they intend to eventually profit from, by improving the company’s balance sheet and selling the company to either another private equity group or to the public via an IPO for more than they paid for it. A recent surge in equity markets this year is a strong indicator that Univision’s time has come.

Univision’s Competitive Advantage

A unique portion of Univision’s viewership is their highly receptive audience. An astounding 90% of their viewership is live, something that in the day of dvr and streaming services such as netflix is the envy of the “Big 4” US based networks, NBC, CBS, ABC and FOX. While they’ve seen a steady 10% decrease across the board, Univision has seen an increase. Univision is currently the 5th most watched TV channel in the United States during primetime hours which makes it a very attractive conduit for advertisers that are trying to reach the fast growing Spanish speaking population of the United States. With such positive demographics driving Univision’s growth, the Univision IPO is expected to be well received by Wall Street.

Univision IPO Rumors Back in 2012

Last year, there were murmurs of Univision’s IPO as well. The company hired former NBC President Randy Falco and concluded a dispute that Univision had with its major supplier of programming that Univision was once in talks to buy, Grupo Televisa.To conclude the dispute, Grupo Televisa agreed to invest $1.2 billion in Univision in exchange for a say in management decisions at Univision. The settlement of the Grupo Televisa dispute cleared a major hurdle that was in the way of the Univision IPO.

Late last month, three inside sources have revealed that Univision has been in talks with banks about an initial public offering, most likely in the first quarter of 2014. Nothing has been officially confirmed by either the holding financial institutions or Univision themselves but, such a move seems inevitable. Univision’s earnings in the second quarter of 2013 have jumped 28% to $40 million and overall revenue grew 10.4% to a new high of $676.5 million.

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