Spanish television and radio giant Univision
So why did it announce last month that it was seeking a buyer for its operations? When you're as big and successful as Univision has been, there are few avenues left on your march toward growth. Last quarter, the company reported that television revenue grew just 4.6%, respectable for most large media companies, but far lower than the 15.6% it had reported for the same period the year before. And as fellow Fool contributor Steven Mallas noted in December, Univision's ability to generate free cash flow has been slipping, with the trailing-nine-month figure dropping some 36% from the year before.
It's also facing tougher competition from the No. 2 Hispanic broadcaster, Telemundo, a division of General Electric's
While Univision's radio stations dominate, they are feeling the heat from competitors who are switching formats and pouring on the gasolina by featuring more reggaeton and so-called "Hurban" music -- Hispanic urban formats of hip-hop with a Latin flavor. Clear Channel
Univision owns two television networks, 73 radio stations, and a cable TV channel. Its record label accounts for the bulk of sales in the U.S. Hispanic music market. All told, the company generated almost $2 billion in revenues and $227 million in profits over the trailing four quarters. It would make a complementary addition to Time Warner
It's also possible that the main provider of its programming, Grupo Televisa will make a bid, but being that it is a foreign company it would have to team up with a U.S. partner to get around laws which prevent foreign ownership of U.S. media properties.
All the interest on la calle, however, proves that even with slowing growth prospects, Univision is muy caliente.
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