From the New York Times-
Univision considers sale of company, source says
NEW YORK (Reuters) — Spanish-language broadcaster Univision Communications (UVN) is considering a sale of the company, a source familiar with the matter said.
An auction of the company is likely to draw keen interest from media conglomerates angling for an entry into the booming U.S. Hispanic market.
The source, confirming a report in The New York Times on Wednesday, said interested parties could include media titans such as News Corp., CBS and Walt Disney. General Electric's NBC Universal owns Telemundo, Univision's smaller rival in the United States.
Univision's shares jumped $3.31, or 10.8%, to $33.85 in morning trading on the New York Stock Exchange, after reaching a new 52-week high of $35.01 earlier in the day. Volume was very heavy at 9 million shares versus a daily average of 1.5 million shares.
Directors at Univision, whose market value is nearly $10 billion, were expected to meet about the proposal Wednesday, the Times report said. The company has retained investment bank UBS to run the auction, if it is approved.
A Univision spokeswoman was not immediately available to comment.
Univision, based in Los Angeles, has seen its television audiences grow even as ratings for the top four U.S. networks erode under pressure from competing media, such as the Internet and video games.
The company also has benefited as advertisers invest more of their budgets into attracting Hispanic consumers with campaigns in Spanish.
In November, Univision said fourth-quarter earnings would beat average analysts' estimates and approved a $500 million stock buyback. The company is due to report results March 2.
Univision has been roiled by a legal dispute with its main supplier of programming, Mexico's Televisa (TV). The company said earlier this month that Televisa accused Univision of violating a long-term contract, in a possible bid to end their shared venture.
Univision considers sale of company, source says
NEW YORK (Reuters) — Spanish-language broadcaster Univision Communications (UVN) is considering a sale of the company, a source familiar with the matter said.
An auction of the company is likely to draw keen interest from media conglomerates angling for an entry into the booming U.S. Hispanic market.
The source, confirming a report in The New York Times on Wednesday, said interested parties could include media titans such as News Corp., CBS and Walt Disney. General Electric's NBC Universal owns Telemundo, Univision's smaller rival in the United States.
Univision's shares jumped $3.31, or 10.8%, to $33.85 in morning trading on the New York Stock Exchange, after reaching a new 52-week high of $35.01 earlier in the day. Volume was very heavy at 9 million shares versus a daily average of 1.5 million shares.
Directors at Univision, whose market value is nearly $10 billion, were expected to meet about the proposal Wednesday, the Times report said. The company has retained investment bank UBS to run the auction, if it is approved.
A Univision spokeswoman was not immediately available to comment.
Univision, based in Los Angeles, has seen its television audiences grow even as ratings for the top four U.S. networks erode under pressure from competing media, such as the Internet and video games.
The company also has benefited as advertisers invest more of their budgets into attracting Hispanic consumers with campaigns in Spanish.
In November, Univision said fourth-quarter earnings would beat average analysts' estimates and approved a $500 million stock buyback. The company is due to report results March 2.
Univision has been roiled by a legal dispute with its main supplier of programming, Mexico's Televisa (TV). The company said earlier this month that Televisa accused Univision of violating a long-term contract, in a possible bid to end their shared venture.