(AP)
The recent purchase of Univision by a consortium of buyers and investors, has many people guessing what they will now do with it, even though the deal isn't scheduled to close until spring of 2007. They were purchased for $13.7 billion.
Michael Kopelman of Merrill Lynch believes that the new owners "will ultimately sell Univision." Other analysts are saying that they think that the consortium will break up the company while others refute that assertion.
Andrew Campbell, a media analyst with Credit Suisse, comments that "We think that is pretty unlikely." Making the argument that the current business model has been very successful.
Radio consultant Bill Tanner concurs saying that "They're well aware of the synergies of having all the multiple platforms."
There is actually a lot at stake in what happens with Univision as many believe it is crucial in the growth of the U.S. Latin music market. It has holdings in some of the market-leading TV, radio and online markets, and as a result offers integrated, multiplatform opportunities for promoting Latin artists. It also hosts some of the big awards and music shows like the Latin Grammy Awards, Premios Lo Nuestro and Premios Juventud.
Some are wondering what will happen to Televisa's and Venevision's stake in Univision as they are contracted to provide programming to Univision through 2017.
The consortium purchasing the entertainment giant includes billionaire media mogul Haim Saban, Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group and Thomas H. Lee Partners.
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