U.S. Hispanic media company Univision Communications Inc. has confirmed that its board of directors is currently reviewing strategic options for the company.
The company has engaged Morgan Stanley & Co. LLC, Moelis & Company LLC and LionTree LLC as financial advisors to assist with the process.
Speculation in the trades suggests the move might signal plans to sell the company, although Univision has not confirmed plans to sell.
In a press release, Univision declined to comment on the timing or outcomes of the ongoing review.
The review comes after a period of high-turnover and perceived turmoil at Univision, including the appointment of CEO Vince Sadusky, who joined the company last year, replacing outgoing CEO Randy Falco, who retired a year ahead of the end of his contract.
The company has made some high-profile moves since Falco’s departure, including the sale of Gizmodo Media Group, which includes The A.V. Club and The Onion, to private equity firm Great Hill Partners.
Univision is currently owned by Saban Capital, a raft of private equity firms and Mexican mass media company Televisa.
“Univision is strategically, operationally and financially strong, having refocused on serving our core consumers, as well as our advertising and distribution partners,” said Sadusky, in a statement.
“Over the past year, Univision has gained momentum as it has divested non-core assets; strengthened programming; secured long-term distribution deals and valuable sports rights; increased investment in news, sports, local, and digital offerings; and materially strengthened its balance sheet. The current environment favors scale and cross-platform offerings, and we believe those major media companies that fail to recognize and capitalize on this unique opportunity in Spanish-language media will be left behind.”
Read the full statement from the Univision board of directors below:
After a successful year under the leadership of our new management team, including a complete refocus on our core Spanish-language media business, it is abundantly clear that Univision’s strategic value has never been greater. The U.S. Hispanic audience represents one of the very few certain growth opportunities in today’s media marketplace, and Univision is ideally positioned. We have the top-rated local news programming in any language in many top markets, we frequently beat the “Big Four” broadcast competition in prime time, and we have a best-in-class sports franchise. This leadership position, along with the increasing recognition that the Hispanic population is driving significant U.S. economic growth, makes Univision a unique media property. The demographic and economic drivers of Hispanic consumers will spur growth in media consumption and spending for years to come, and we want Univision to be in the best position to capitalize on this historic opportunity. As the last major independent broadcast media company in the U.S., a market where scale and strength matter, Univision has the fundamentals for continued growth on its own or with a partner – and after careful consideration, the Board and management team have concluded the time is right to explore strategic options.