It was a largely expected deal. Still, the Media Bureau of the FCC used the time-honored tactic of burying big news before a major holiday to tell the world of its decision.
It has given its OK to a transaction that will see a global private investment firm and a related media-focused operating and investment company take majority ownership interest in the biggest multimedia company targeting U.S. Hispanics.
A Memorandum Opinion and Order adopted and released December 23 sees the Media Bureau grant applications of transfer of control held by subsidiaries of Univision Holdings Inc. from Madison Dearborn Partners, Providence Equity Partners, TPG, Thomas H. Lee Partners, and Saban Capital Group to Searchlight III UTD, ForgeLight and continuing interest holder Grupo Televisa S.A.B., based in Mexico.
This puts the wheels in motion for closing to take place, as expected, no later than Thursday, December 31.
At that time, Wade Davis will succeed Vince Sadusky as Chief Executive Officer. Until now, Univision communications executives have remained mum on when that would take place. However, with Bobby Amirshahi exiting as SVP/Corporate Communications of Univision Communications in November for similar duties at Macy’s, all signs pointed toward Sadusky’s departure by the end of 2020.
Davis’ investment in Univision is joined by that of Eric Zinterhofer, the Founding Partner of Searchlight.
To make Searchlight and ForgeLight’s acquisition of a majority stake in Univision happen, it must move forward with its previously announced divestiture of Univision Puerto Rico.
As RBR+TVBR reported on August 26, Liberman Media Group LLC — headed by former LBI Media (a.k.a. Liberman Broadcasting) leader Lenard Liberman — is paying $1 million for the properties, comprised of the following stations:
- WLII-11 in Caguas, with a signal covering the San Juan metropolitan area
- WOLE-12 in Aguadilla, serving the western side of Puerto Rico
- WSUR-9 in Ponce, which serves the southern side of Puerto Rico
- W21CX-D, a digital translator in Mayaguez, in the southwest tip of Puerto Rico
In order for ForgeLight and Searchlight to complete its majority take of Univision, it had to sell the Univision Puerto Rico TV station and have a non-affiliated entity take possession of what would become a Univision network affiliate. The reason? ForgeLight and Searchlight have attributable interest in Hemisphere Media Group, owner of long-successful WAPA-4 in San Juan. ForgeLight/Searchlight also have a stake in the island’s major MVPD, Liberty, although that is not a key factor tied to the Univision Puerto Rico divestment need.
This explains why Univision is not retaining the Univision Puerto Rico intellectual property and placing it on the other full-power TV facility it owns in the U.S. commonwealth: WSTE-7, now branded as “TeleIsla” and airing infomercials. Univision acquired that property, once “SuperSiete” under Malrite Communications ownership, in 2007 from then-owner Jerry Hartman. WSTE will, thus, retain its current programming while Liberman will now own Univision Puerto Rico via an affiliation agreement.
And, the continued ownership of WSTE suggests the Univision Radio combo of Spanish Talk WKAQ-AM and Latin Top 40 WKAQ-FM “KQ105” won’t be changing anytime soon.
In granting the deal, the Media Bureau also said OK to a “continuing satellite exception” to the Local Television Ownership Rule in the New York market. There, WFTY-TV in Smithtown, N.Y., is a “satellite” of WFUT-TV in Newark, N.J. Many may recall these stations as the home of Wometco Home Theater (WHT) from 1980-1985 in the New York Tri-State Area.
And, Univision is cleared for 100% foreign ownership, should it opt to go that route.
Searchlight Capital Partners III GP LLC is owned equally by Eric Zinterhofer, a citizen of the United States; Erol Uzumeri, a citizen of Canada; and Oliver Haarmann, a citizen of Germany. Additionally, Searchlight ownership includes a limited partnership based in the Cayman Islands.
The deal’s consummation was not without detractors. The League of United Latin American Voters (LULAC), national Latino organization MANA, the National Hispanic Foundation for the Arts, and the Attorneys General of New York and California each requested a delay in the issuance of a declaratory ruling.
Furthermore, Mijente and Free Press filed an informal objection, asking the Commission to reject the plan while contending that allowing Univision to become foreign-owned “would result in less competition, diversity, and localism, contrary to the public interest.” The Media Bureau did not agree with this assessment.
