Boston, MA 06/19/2014 (wallstreetpr) – The talks are the latest sign of a possible merger as the telecom, and cable and satellite TV industry is heading towards consolidation. The latest one was as reported by the Wall Street Journal and owners of Univision Communications Inc is going through the preliminary talks with CBS Corporation (NYSE:CBS) and Time Warner Inc. It may be an issue with the price as the owners valued the Company as $20 billion.
The industry has already seen similar sort of discussion in last few months as Comcast Corp’s proposal to takeover Time Warner Cable Inc for $45 billion and AT&T’s discussion to buy DirecTV.
But, the details of the latest discussion are not yet available, and Univision’s spokeswoman Monica Talan refused to answer the comment and also nobody from CBS Corporation (NYSE:CBS) and Time Warner appears to respond to the talks of a possible merger.
The possible options are also revolving around the Mexican media conglomerate Group Televisa SAB as it acquired 35% stake in 2012 and proposed for additional purchase of 5% stake in next five years. Currently, it owns 38% and also supplies much of Univision’s programming businesses.
The cable and digital networks and broadcasting continue to provide potential growth within the industry. So, CBS is now focusing more on its entertainment, cable and broadcasting and expanding its operation. The Company recently divested its outdoor advertising business (CBS Outdoor).
CBS Corporation (NYSE:CBS) is famous for its entertainment content and owns the most watched television network in the U.S. The Company also delivers services through a joint venture with Warner Bros. Entertainment. CBS has a solid presence and positioning in the North American region.
The association with Univision may expand its business in the entertainment, cable and digital networks and broadcasting segment. In addition, the popularity of Univision among Hispanic America will further increase its presence among the communities.