Investing In TV Companies? Choose Wisely

What’s your TV investment pleasure: sports TV or Spanish-language TV?

Sending up smoke signals that it was interested in selling, Univision Communications, may be looking to capitalize on both -- especially this time of year, when it’s airing the World Cup. Soccer is a sport that has a strong base among U.S. Latino consumers but is also growing among diverse non-Spanish-speaking U.S. TV viewers as well.

Seems that all signs would seemingly point upward for the Spanish-language TV marketplace. But wait a second -- at what price? Univision wants $20 billion, but it also has $9 billion in debt, some of this due to its $13.7 billion sale price some seven years ago when Haim Saban and a group of investors bought in.

Though the market still seems to have a big upside, now things are a bit different. Univision has recently been plagued with sinking ratings. This is not what we are thinking about when it comes to soaring Spanish-language TV growth. The network is blaming a couple of shows as contributing to its downfall.

Others would say Univision caters to an older Latino U.S. population, who speak mostly in Spanish and look to find mostly Spanish-language entertainment. Though Univision has made efforts to shift gears with Spanish/English-language TV networks and programming targeted to younger U.S. Latinos, the numbers might still give investors pause in paying a premium for the TV network group.

That said, Univision has some 60 TV stations, as well as cable TV networks, radio networks, digital properties  and other media platforms -- all which will be valuable to a future media conglomerate. Additionally, Univision’s revenue increased nearly 8%, to $2.6 billion.

Question is: If you missed the upswing of Spanish-language TV platforms in the U.S, why would you want to pay a premium now? That question might be relevant for any sports TV networks that are looking for buyers as well.

Recommend (5) Print RSS
All content published by MediaPost is determined by our editors 100% in the interest of our readers ... independent of advertising, sponsorships or other considerations.
1 comment about "Investing In TV Companies? Choose Wisely ".
Check this box to receive email notification when other comments are posted.
  1. Jeff Weber from BizTalkRadio and Lifestyle TalkRadio, June 23, 2014 at 9:43 p.m.

    Univision's radio entities enhance their overall value which still makes this a valued acquisition for someone.