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 Business News | July 2006 
Televisa Says Could Still Make Offer for Univision
 Cyntia Barrera Diaz - Reuters
Mexican media giant Televisa on Tuesday said it does not rule out a new takeover offer for U.S. broadcaster Univision after losing a bidding war over the company last month.
Televisa suffered a major blow to its U.S. plans when a group of investors, including media mogul Haim Saban, edged it out with a $12.3 billion bid for Spanish-language broadcaster Univision Communications Inc.
Televisa later said it was ready to sell its 11.4 percent stake in Univision, marking a shift for the company, which has sought to boost its stake for more than 25 years.
Executive Vice President Alfonso De Angoitia said on Tuesday that Televisa might consider a new counter bid for Univision.
"We have not made a final decision, but I will not speculate on the price," De Angoitia told analysts on a conference call.
He stressed that Televisa would not join the Saban group, which also includes other U.S. equity firms, in its acquisition of Univision.
"We also officially told that group we would be willing to start a negotiation to sell the block of stock that we own in Univision to them. That has not changed," De Angoitia said.
The buyout deal between Univision and the group of investors carries a $300 million breakup fee.
In the meantime, Televisa said it will explore other business opportunities outside broadcast television to expand in the United States.
"We are looking at many potential opportunities, Televisa is in a great position to take advantage of those opportunities," De Angoitia said.
Analysts believe the most likely growth vehicle for the Mexican company outside broadcast television in the U.S. Hispanic market is the Internet.
Univision and Televisa have disputed the rights to air Televisa content online in the United States.
A provision under a 17-year programming deal they share, which is due 2017, bars both from airing Televisa shows online in the United States. But the provision expires on December 19, after which Televisa believes it will have the right to do so.
During the call, De Angoitia also said that its gaming business in Mexico is growing slower than planned.
Televisa now plans to have 10 bingo and sports betting halls up and running by May of next year. In April, the company said it would have them ready in 2006.
"We have opened four bingos, one in Puebla and three in Mexico City and surrounding areas. We expect to open six more of those bingos before May '07," said De Angoitia.
The company has estimated each of the gaming halls would cost around $4.5 million. |
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