Univision Music price revealed


Univision Communications revealed in an SEC filing that Universal Music Group is paying 153 million for Univision Music Group. Here is how the money will change hands: “The total consideration due to Univision under the Purchase Agreement is 153 million (including approximately 13 million for working capital), payable in cash as follows: (i) approximately 113 million upon the closing, (ii) 11.5 million upon the first anniversary of the closing, (iii) 12.5 million upon the second anniversary of the closing, (iv) 6 million upon the third anniversary of the closing, and (v) 10 million upon the fourth anniversary of the closing, subject to purchase price adjustments. Univision is expected to incur fees and certain obligations of approximately 10 million in connection with the transaction.

RBR/TVBR observation: A far cry from the asking price which we had heard was well in excess of 300 million. The sale of the record label division was supposed to provide the lion’s share of the 500 million in asset sales that the private equity buyers of Univision hoped to complete, with the rest coming from sales of some non-core radio stations. It now appears doubtful they will come anywhere close to that half-billion goal.