Univision considers sale of company

[stationi]

<a target="_blank" href=http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060208:MTFH18321_2006-02-08_11-45-14_N08384110&symbol=UVN.N>link here</a>

"Spanish-language broadcaster Univision Communications is considering a sale of the company, a source familiar with the matter said.

The source, confirming a report in The New York Times on Wednesday, said interested parties are likely to include media titans such as News Corp., CBS Corp. and Walt Disney Co."

If either of those three companies bought Univision they would have to sell some stations. News Corp and CBS for instance would have the two stations they already own plus KMEX and KFTR in LA and would probably have to sell 2 of them.

Also in the same article...

"Univision has also been roiled by a legal dispute with its main supplier of programming, Mexico's Televisa. The company said earlier this month that Televisa accused Univision of violating a long-term contract between the two parties, in a possible bid to end their shared venture."<P ID="signature">______________
<a target="_blank" href=http://www.stationindex.com/>Complete list of tv stations & tv markets</a></P>

 

[desertv]

> link here
>
> "Spanish-language broadcaster Univision Communications is
> considering a sale of the company, a source familiar with
> the matter said.
>
> The source, confirming a report in The New York Times on
> Wednesday, said interested parties are likely to include
> media titans such as News Corp., CBS Corp. and Walt Disney
> Co."
>
> If either of those three companies bought Univision they
> would have to sell some stations. News Corp and CBS for
> instance would have the two stations they already own plus
> KMEX and KFTR in LA and would probably have to sell 2 of
> them.
>
> Also in the same article...
>
> "Univision has also been roiled by a legal dispute with its
> main supplier of programming, Mexico's Televisa. The company
> said earlier this month that Televisa accused Univision of
> violating a long-term contract between the two parties, in a
> possible bid to end their shared venture."
>
Well some say that the Espanol stations have higher ratings in some markets than English stations....it may be a way for Fox to reprogram their ex-UPN stations

 

[KMRichards]

> If either of those three companies bought Univision they
> would have to sell some stations. News Corp and CBS for
> instance would have the two stations they already own plus
> KMEX and KFTR in LA and would probably have to sell 2 of
> them.

Not that it would be likely, but they could sell their second V's (for a huge profit) and keep both of the U's, since the rules count analog U's as one-half a station.

That is how NBC owns KNBC/4, KWHY/22, and KVEA/52 in the market.

Disney wouldn't have a problem as they only own one television station in the markets where Univision owns stations.<P ID="signature">______________


</P>

 

[stevebaxley]

An update on that post..
just broke on FNC this morning, Univision announced it IS up for sale, Confirming reports from other media outlets .

Now for the possible buyers *This is the opinion of a viewer* with vegas like odds and reasons


ABC/DISNEY: Odds 10-1
Reason they could get Univision:
with the success NBCU has with Telemundo,especially with its daytime and nighttime original productions,the house of mouse could perform the same magic
and create new type of programming for not just Univision, but their two other networks,GALAVISION USA and TELEFUTURA, News wise, with ABC's News division Univision could tap right in to the strength of ABCNEWS and be more dominate than ever.
And with some of that extra dinero from the sale of its radio division(not including ESPN RADIO or RADIO DISNEY)to Citadel, this could give teh house of mouse a leg up in the bidding process. as for the FCC station ownership rules, they are under the limit and it could be a perfect fit.


FOX: Odds 300-1/even money if partner with former parent Televisa
Reason they could get Univision:
Fox may have a slight edge on this due to its partership with Televisa in a couple of cable networks (sky mexico for one),and with FOX's help could revitalize the network into a more stronger competitor against NBCU's Telemundo
and again utilizing Univision's other networks, the pot of gold is just ripe,
and if FOX partners it right with televisa, it could be a good way to welcome the networks former founders family BACK to the network they foundec long ago



CBS: Odds EVEN money to ehhh..10-1
Reason they could get univision:
CBS could be the big dark horse in this, coming off its split with parent Viacom,they COULD come in and make a bid again maybe partnering with Televisa
however, along with FOX could find themselves in a bit of a problem station wise
already at the percentage limit for both nets, that could be a sticking point in a possible bid,but if they could find a way, CBS coudl be the one to watch closely.


Other possible buyers

Comcast: odds 50 to 1
Reason they could get univision:
unknown,but Comcast could be the unknown equasion

Time-Warner: Odds 200 to 1
Reason they could get Univision:
TW's Warner brothers TV unit and CNN nuff said!


BUT!! as just was reported by CNBC's Michelle Cabereo, there is one OTHER player in this, televisa itsself and a interesteing equasion


Televisa as you know is embroiled in a feud with Univision, With Univision going up for sale, this COULD be the towel tosser in that feud and lawsuit that could break the contract Univision has with televisa, now Televisa is the biggest supplier of programs to Univision, Televisa could be doing a little lap dance all the way to 2470 west 8th ave in Hialeah and do a snuggle with NBCU's Telemundo.. this sale could litterally backfire in the face of Univision's 78- year old italian chairman jerrold perechino.


The way I see it, it is a win-win for Televisa, I think Disney/ABC has a good lead, with a possible FOX/televisa joint bid as the dark horse. with CBS left out ..and televisa somewhere in the equasion or bailing out and doing a tango
with NBCU's Telemundo..


Stay tuned...this week JUST got interesteing

 

[ixnay]

?No mas "Amigas y Rivales"?

!Ay carumba!

ixnay

 

[fybush]

Wrong. (But interesting.)

> > If either of those three companies bought Univision they
> > would have to sell some stations. News Corp and CBS for
> > instance would have the two stations they already own plus
>
> > KMEX and KFTR in LA and would probably have to sell 2 of
> > them.
>
> Not that it would be likely, but they could sell their
> second V's (for a huge profit) and keep both of the U's,
> since the rules count analog U's as one-half a station.
>
> That is how NBC owns KNBC/4, KWHY/22, and KVEA/52 in the
> market.

Incorrect on all counts.

The "UHF discount" is against the nationwide cap, not against in-market duopoly limits. (Where it still doesn't help NBC any, since duopolies don't count against the nationwide cap, so only KNBC's full share of the LA market counts against the cap.)

The in-market duopoly rule doesn't count UHF any differently from VHF. NBC hangs on to KWHY through a waiver based on the "failing station" rule - it persuaded the FCC that 22 couldn't survive as an independent Spanish-language U.

Using the same rationale, CBS might be able to keep 2, 34 and 46, or (for whatever reason) 2, 9 and 46, but would have to spin 9 (in the former case) or 34 (in the latter.) It would almost certainly be unable to get a waiver for any other combination of stations - as the hugely dominant Spanish TV station in the #1 Hispanic market, KMEX is simply too successful to count as a "failing station," and the FCC would frown on the market concentration that would result from any combination that included 2, 9 and 34 under a common roof.

This does raise an interesting point, though - two of the biggest markets where CBS is giving up its UPN affiliations are Miami and Dallas, which of course also happen to be two of the biggest markets for Univision. It's not at all hard to imagine CBS finding it more valuable to get the Univision stations in those markets (especially Miami's WLTV, probably the single most successful big-market Spanish TV station in the country, and often that market's top-rated station, period) than to hang on to English-language indies.

CBS is free to form duopolies in most of Univision's other O&O markets, and combinations like WCBS-TV/WXTV, WBBM-TV/WGBO and KPIX/KDTV would be potent market forces. It's unlikely, given how much radio CBS has in each of those markets, that they'd be able to also keep the Telefutura stations, and it's a certainty that the Univision Radio operation would have to be spun off under such a scenario. <P ID="signature">______________
Tower Site Calendar 2006 JUST RELEASED! - <a target="_blank" href=http://www.fybush.com/nerw.html#calendar>www.fybush.com</a></P>

 

[KMRichards]

I stand corrected, and have more thoughts ...

> The in-market duopoly rule doesn't count UHF any differently
> from VHF. NBC hangs on to KWHY through a waiver based on the
> "failing station" rule - it persuaded the FCC that 22
> couldn't survive as an independent Spanish-language U.
>
> Using the same rationale, CBS might be able to keep 2, 34
> and 46, or (for whatever reason) 2, 9 and 46, but would have
> to spin 9 (in the former case) or 34 (in the latter.) It
> would almost certainly be unable to get a waiver for any
> other combination of stations - as the hugely dominant
> Spanish TV station in the #1 Hispanic market, KMEX is simply
> too successful to count as a "failing station," and the FCC
> would frown on the market concentration that would result
> from any combination that included 2, 9 and 34 under a
> common roof.

Given that under a CBS-owned Univision, the Telefutura network is probably toast anyway, they could then spin off 46 to someone like Liberman and be fine. I would agree that 46 would not be viable as a stand-alone independent; it struggled from the time it signed on until it became part of Univision. (Bonus points if you remember the calls, owner, and format when it first went on.)

> CBS is free to form duopolies in most of Univision's other
> O&O markets, and combinations like WCBS-TV/WXTV,
> WBBM-TV/WGBO and KPIX/KDTV would be potent market forces.
> It's unlikely, given how much radio CBS has in each of those
> markets, that they'd be able to also keep the Telefutura
> stations, and it's a certainty that the Univision Radio
> operation would have to be spun off under such a scenario.

As I said, Telefutura would likely be history under CBS (maybe the whole network could be spun off to Liberman?). Probably under News Corp as well. Would you think KBHK could be retained under a waiver with KPIX and KDTV?<P ID="signature">______________


</P>

 

[fybush]

Re: I stand corrected, and have more thoughts ...

> As I said, Telefutura would likely be history under CBS
> (maybe the whole network could be spun off to Liberman?).
> Probably under News Corp as well. Would you think KBHK
> could be retained under a waiver with KPIX and KDTV?

Forgot about KBHK. I don't think the FCC would look favorably on a waiver in this situation, since KBHK will have the CW affiliation and would be hard to categorize as "failing." CBS' substantial radio holdings in the market would work against them here, too.

But hey - now that CBS is playing ball with Tribune, a company with no holdings in the San Francisco market, there'd be a ready buyer for KBHK (or, given the tax implications, a ready trader - KBHK for KWGN, perhaps? It would make a heck of a duopoly with KCNC.)

I'm somewhat inclined to think that IF Univision ends up in the hands of one of the big English networks (far from a certainty), CBS may actually be the logical choice, given that Disney has its hands full right now with other big projects (radio spinoff, Pixar acquisition) and so does Fox (the possible creation of a "Fox 2," or at least finding something this fall for WWOR/WPWR/KCOP/etc.)

Fox also has a much more challenging duopoly situation than CBS - not just LA, but also Chicago and especially NYC, where the WNYW/WWOR duopoly already exists on a waiver basis (because of the cross-ownership with the NY Post), and there's not a chance in a million that they'd be able to keep WNYW, WWOR and WXTV. <P ID="signature">______________
Tower Site Calendar 2006 JUST RELEASED! - <a target="_blank" href=http://www.fybush.com/nerw.html#calendar>www.fybush.com</a></P>

 

[Markxxx]

Re: I stand corrected, and have more thoughts ...

Fox also has a much more challenging duopoly situation than
> CBS - not just LA, but also Chicago and especially NYC,
> where the WNYW/WWOR duopoly already exists on a waiver basis
> (because of the cross-ownership with the NY Post), and
> there's not a chance in a million that they'd be able to
> keep WNYW, WWOR and WXTV.
>
Tripolies are permitted in markets with 18 or more television stations. Not many markets qualify but LA does


The June 2003 decision allowed broadcasters to own up to two television stations in markets with more than four full-power television stations and, in markets where there were over 18 stations, an owner could hold up to three television licenses. However, the FCC refused to allow the combination of any two of the top four rated stations in a market.

The Court upheld the prohibition against the combination of any two Top 4 stations, and concluded that the FCC was within its power to permit triopolies in some markets. However, the Court remanded the decision to the Commission to determine whether the Commission's decision about the number of stations within a market before a duopoly or triopoly could be created was proper. The Court questioned whether the limit should be set simply based on the number of stations within a market, or whether a further analysis of the importance of those stations needed to be conducted. The example of whether the combination of the number 1, 5 and 6 television stations had the same public interest impact as the combination of the number 17, 18 and 19 rated stations in the market was raised in this context. Thus, on remand, the FCC will have to justify any numerical limitations that they establish, or come up with some other mechanism for determining the impact of a consolidation (perhaps an analysis of ratings or market revenues).

The June 2003 decision also allowed duopolies to be created where the station being acquired was a "Failed Station," one which was financially distressed. Under previous rules, the FCC had required that a party relying on a Failed Station waiver show that the failed station had been offered first to out-of-market buyers, and that there was no other willing buyer. In the 2003 decision, the FCC said that a party relying on that waiver need no longer offer the station to other buyers. The Court remanded that decision to the FCC for further consideration, finding that the Commission had not adequately evaluated that decision's impact on minorities and new entrants who might be interested in acquiring a failed station.<P ID="signature">______________
Once I figured out the meaning of life....Then I forgot to write it down.</P>

 

[stevebaxley]

Re: I stand corrected, and have more thoughts ...

> As I said, Telefutura would likely be history under CBS
> (maybe the whole network could be spun off to Liberman?).
> Probably under News Corp as well. Would you think KBHK
> could be retained under a waiver with KPIX and KDTV?
>


While I agree that Telefutura COULD be the sacrifical lamb in the equaision
I thought more on some possiblities,
IF CBS is the big winner, granted because they are at the level of the ownership cap like FOX ,this might not happen, but if CBS did succeed in geting Univision, they could rightfully merge telefutura into its other sister cable net GALAVISION USA

Some other possibiities include Televisa in the mix with a broadcast partner..say FOX or even ABC??

ABC is odds on because of two reasons

A) they got some much needed capitol from the sale ..uh I mean MERGER of ABC RADIO to Citadel

B)they are WAY under the ownership cap, thus a perfect fit

 

[KMRichards]

Re: I stand corrected, and have more thoughts ...

> While I agree that Telefutura COULD be the sacrifical lamb
> in the equaision
> I thought more on some possiblities,
> IF CBS is the big winner, granted because they are at the
> level of the ownership cap like FOX ,this might not happen,
> but if CBS did succeed in geting Univision, they could
> rightfully merge telefutura into its other sister cable net
> GALAVISION USA

The story in this morning's Los Angeles Times on this brought up something I had not considered, but is certainly possible: Sumner Redstone could convert his shares of CBS into common stock and acquire Univision under Viacom.<P ID="signature">______________


</P>

 

[stevebaxley]

Re: I stand corrected, and have more thoughts ...

> > While I agree that Telefutura COULD be the sacrifical lamb
>
> > in the equaision
> > I thought more on some possiblities,
> > IF CBS is the big winner, granted because they are at the
> > level of the ownership cap like FOX ,this might not
> happen,
> > but if CBS did succeed in geting Univision, they could
> > rightfully merge telefutura into its other sister cable
> net
> > GALAVISION USA
>
> The story in this morning's Los Angeles Times on this
> brought up something I had not considered, but is certainly
> possible: Sumner Redstone could convert his shares of CBS
> into common stock and acquire Univision under Viacom.
>


Hmmmmmm....Univision a VIACOM Company, interesting toss right there

 

[Tom_Desmond]

Re: I stand corrected, and have more thoughts ...

> Tripolies are permitted in markets with 18 or more
> television stations. Not many markets qualify but LA does

Um, no, they're not. Triopolies are not currently permitted, but NBC/GE has a waiver for it's LA stations while the FCC sorts out the ownership rules.

 

[jegrant]

I agree the competitive landscape is different now.

With Telemundo backed up by NBC Universal, they can offer a much more competitive distribution package to Televisa.

I have to say that I hope whomever buys Univision does keep Telefutura going. TF is the #2 Spanish-language net in many dayparts.

(The other alternative might be, if Televisa goes elsewhere, to move most of Telefutura's shows over to Univision. It's notable, IMO, that Telefutura seems to rely more on original productions and Venezuelan imports than its parent Univision. TF does have some shows from Televisa, but they are not the primary part of programming.)