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Hemisphere Media Group has been named one of the possible candidates to acquire Univision Communications Inc., says the Wall Street Journal.
According to WSJ, Hemisphere, which has headquarters in Miami and is led by Alan Sokol, would be one of the three potential buyers, joining the private capital firm Platinum Equity and possibly the former financial director of Viacom, Wade Davis.
Hemisphere has several channels in Spanish in the US, Latin America, and EE Puerto Rico, such as Cinelatino and WAPA América. With a market capitalization of approximately US$550 million, less than Univision, they could need a partner if the agreement succeeds.
Platinum Equity, launched in 1995 with headquarters in Los Angeles, is directed by the multimillionaire Tom Gores. Although it does not have traditional media in its portfolio, it has around US$19 billion in assets and a portfolio of 40 companies.
The third possible option, Wade Davis, is promoting a separate offer to Univision, backed by third-party financing. If they reach an agreement, Davis could become CEO of Univision.
In July, Univision hired Morgan Stanley, Moelis & Co., and LionTree Advisors to explore possible strategic options, including sales. In September, Univision revealed that they still had a debt of around US$7.3 billion. However, Univision recently managed its incomes from the third quarter to increase from 8.5% to US$682.2 million.
The sales process is not yet in its final stages, therefore it is necessary to wait for official statements.
Univision is property of Saban Capital Group, Madison Dearborn Partners, Providence Equity Partners, TPG and Thomas H. Lee Partners.
