Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 20 pages
Data source: Generalised experience
Topics:
Televisa; Univision; Bain Capital; Kohlberg Kravis Roberts & Co; Cascade investments; Carlyle group; Blackstone group; TV Azteca; American Broadcasting Company (ABC); CATV (Community Antenna Television); Time Warner; News Corporation; Hispanic market; Madison Dearborn Partners Inc; Saban Capital
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Abstract
Televisa, the Spanish-language media giant and Mexico''s biggest media company had made a bid for US$13 billion or US$36.25 a share for Univision Communication, the third-largest Spanish-language broadcaster. The Televisa Group was backed by Venezuelan Media Investor Gustavos Cisneros, Bain Capital, Blackstone Group, Carlyle Group, Cascade Investment and Kohlberg Kravis Roberts. The other bidding group, consisting of Madison Dearborn Partners Inc, Providence Equity Partners, Texas Pacific Group, Thomas H Lee Partners and billionaire Haim Saban''s Saban Capital Group, had placed their bid of US$12.3 billion or US$35.5 a share. The deals were facing hurdles for price and governance issues as Univision was expecting bids worth more than US$40 a share. Analysts had perceived some big potential regulatory hurdles for the bidders in dealing with the Federal Communications Commission''s foreign ownership and overlapping asset restrictions. Analysts were divided in their opinions as to whether Univision would accept the offer, try to push the bids higher or decide against selling the company entirely. The case deals with: (1) the strategic reasons why different companies prefer to acquire Univision; (2) the deal offer by various companies; and (3) the bidding and counter bidding process to acquire Univision. This case also highlights the various synergies and problems associated with the Univision acquisition.
About
Abstract
Televisa, the Spanish-language media giant and Mexico''s biggest media company had made a bid for US$13 billion or US$36.25 a share for Univision Communication, the third-largest Spanish-language broadcaster. The Televisa Group was backed by Venezuelan Media Investor Gustavos Cisneros, Bain Capital, Blackstone Group, Carlyle Group, Cascade Investment and Kohlberg Kravis Roberts. The other bidding group, consisting of Madison Dearborn Partners Inc, Providence Equity Partners, Texas Pacific Group, Thomas H Lee Partners and billionaire Haim Saban''s Saban Capital Group, had placed their bid of US$12.3 billion or US$35.5 a share. The deals were facing hurdles for price and governance issues as Univision was expecting bids worth more than US$40 a share. Analysts had perceived some big potential regulatory hurdles for the bidders in dealing with the Federal Communications Commission''s foreign ownership and overlapping asset restrictions. Analysts were divided in their opinions as to whether Univision would accept the offer, try to push the bids higher or decide against selling the company entirely. The case deals with: (1) the strategic reasons why different companies prefer to acquire Univision; (2) the deal offer by various companies; and (3) the bidding and counter bidding process to acquire Univision. This case also highlights the various synergies and problems associated with the Univision acquisition.