• by Wayne Friedman , April 28, 2006

Some major media companies look to be shifting position on a possible purchase of Univision--Walt Disney Company, CBS, and Grupo Televisa are now all actively considering buying the large Spanish-language network, according to published reports.

Recently, media companies had expressed that Univision' price tag---at $40 a share amounting to $14 billion--was too high. Univision, controlled by billionaire Jerrold Perenchio, has been pondering a sale of a company since February.

A number of media companies, including Disney and CBS, did take an initial look at Univision's financial books. Walt Disney Co., however, has been analyzing Univision's books more closely in recent days, according to reports.

CBS may have a different agenda. Yesterday, Les Moonves, chief executive officer of CBS, told investors and journalists in a press conference about its first earnings report as a public company, saying that "we're not looking for an acquisition of that size."

Or perhaps that expensive. Univision's proposed price tag would equate to 19 times cash flow and a 36 price/earning ratio. By way of comparison, Viacom is selling at 11 times cash flow; CBS is an even cheaper 8 times cash flow.

Grupo Televisa, the big Mexican TV production company and broadcaster, has a significant 11 percent stake in Univision, and provides the channel with much of its programming. Last month, The New York Times reported that it has been formalizing a bid with private investors, including Providence Equity Partners, Madison Dearborn Partners, the Cisneros Group of Venezuela, and the media entrepreneur Haim Saban.

Because of Grupo Televisa's stake, media analysts have said the most likely scenario is that a major U.S.-based media company would need a joint bid with Grupo Televisa to gain control of Univision.

This would mean its chief executive, Televisa Chairman and President Emilio Azcarraga, would need to do a Rupert Murdoch--becoming a U.S. citizen as well as relocating its headquarters to the U.S., abiding by Federal Communication Communications rules.

A Univision spokeswoman had no comment about the possible buyers.