Univision, the biggest Spanish-language broadcaster in the United States, is on the cusp of major changes.
On Tuesday, the company called off a long-planned initial public offering. On Wednesday the Wall Street Journal reported that the company is “undertaking a business review that could lead to severe cost cuts.”
And there’s going to be a change at the top. Univision’s board of directors said Wednesday night that CEO Randy Falco is retiring at the end of this year.
The announcement raised eyebrows because the board took action just four months ago to renew Falco’s contract through 2020.
“Recently Randy came to us and told us that he would like to retire at the end of 2018 when he will turn 65 years old and end an outstanding 8 year tenure as the CEO of Univision,” Haim Saban, chairman of the board, said in a statement.
Saban said the board “reluctantly agreed to Randy’s wishes.”
“During his time as CEO he has modernized the Univision organization, grown earnings and reduced debt at record levels and we could not be more pleased with his performance,” Saban said.
The statement was partly a response to unflattering media reports. The Hollywood Reporter said Tuesday that “investors are disappointed with Falco’s inability to take Univision public,” but also said “there are no plans to replace him.”
The Journal disputed that on Wednesday evening, saying that the board “is considering replacing” Falco.
Then Saban’s statement came out.
He announced Falco’s retirement and said “we have asked Randy to work with us over the next year in restructuring the company and consult with the board on a transition to new leadership.”
A Univision spokesman had no further comment on the “restructuring” plans or the possibility of cost cuts.
The Journal said that the plans “would be aimed at improving the company’s performance and sprucing it up in advance of courting suitors for a potential sale.”
One way or another, Univision’s private-equity backers are looking for an exit. This has been true for several years. The backers include the Saban Capital Group, TPG Capital, Thomas H. Lee Partners, Providence Equity Partners, and Madison Dearborn Partners.
Saban and other investors bought the media company in 2007. They explored a sale back in 2014. Then they registered for an IPO in 2015.
But after a recent board meeting, the IPO effort was scrapped. Univision cited “prevailing market conditions.”