Poor performance of media-company stocks, a volatile market and the possibility of an interest rate hike by the Federal Reserve this month could keep investors away from buying Univision stock if it goes public before the end of the year. Those may also be reasons why Univision decided to put off an IPO.
In July, Univision filed plans for its IPO with the SEC, disclosing financials, including the multi-million dollar losses stemming from Fusion and El Rey Network, indicating the company was moving forward with its plans for an IPO at the end of 2015.
But according to a Wall Street Journal report, Univision’s board met yesterday and discussed postponing the IPO until early next year due to market concerns, including “lackluster recent performance of media-company stocks and a sluggish market for first-time share sales.”
An interest rate hike is also cause for investors to worry, because Univision is still carrying a huge debt load from 2007, when a group of private equity owners led by billionaire Haim Saban bought the company for $13.7 billion.
An increase in interest rates could make that debt load more expensive and harder to refinance.
The group that owns Univision, which also includes Madison Dearborn Partners, Providence Equity Partners, TPG and Thomas H. Lee Partners, has been trying to cash out for years – first looking to sell the company, and in the past three years, exploring the IPO.
In preparation for the IPO, Univision has been restructuring, shedding staff and cutting costs throughout the company.
Univision can spin this all the way the want it.
But Reality Check is right there.
No interest and not enough good will to attract gains and traction.
A crazy price tag ( not even their close allies were interested when Mr. Saban did his sugarcoating tour last summer )
Televisa has its own financial or legal shenanings that forbid them from any major involvement.
Mr. Gates does not seem interested in the same way as before.
The unexplained expenses, crazy promotions, the waste and the financial excesses down in Doral, are all highly known and growing, with no effective response from the non-spanish speaking Honchos, here in Manhattan.
What it was a shinny crown company once, is now a sad caricature of better times.
We just hope the best for so many good colleagues, those who make a decent living out of it, trying to make a difference.