Friday, June 13, 2014

Merger Mania Part II

Just last week, following the third announced merger news of Sprint and T-Mobile, I speculated that the next would be a cable network.  Well, the pace of media merger mania is not slowing down.  According to The Wall Street Journal, Univision is having preliminary for sale discussions.  As its major competitor, Telemundo, is owned by NBC, another broadcaster could be interested in acquiring the broadcast network and its sister cable nets.  "Univision has been seeking to expand its offerings to attract more advertising and subscription revenues from pay TV operators. In the past two and a half years alone, it has launched nine cable channels, bringing the total to 12."  Given the growth of the Hispanic community and the great ratings that Univision continues to get, the network would be a fine addition for folks like CBS, FOX, and ABC.  Some think that Time Warner, home to the Turner property of networks, would be a great fit as well.

That a deal has not yet been struck may be a function of price/value.  Univision last turned over 7 years ago and the current owners may be seeking a bigger ROI.  Should a buyer be found, the FCC will have a very busy summer as they decide on all the merger matters before them, including Comcast -Time Warner Cable, AT&T - DirecTv, and Sprint-T-Mobile. And who will be next to sell.  I expect more to come this year.