Malone Takes A Pass On Univision ... For Now
June 8, 2009 at 6:56 AM (PT)
UNIVISION COMMUNICATIONS appears to have avoided a telenovela-like saga over its finances, thanks to the thawing credit markets, reports THE NEW YORK POST. "As the price of the company's debt has risen in the past few weeks, the company has managed to beat back the specter of defaulting on its $10 billion debt load and an advance on the company by media mogul JOHN MALONE.
"Two sources familiar with the matter said that MALONE seriously considered buying a large swath of UNIVISION's debt when it was trading at 43 cents on the dollar. But one of the sources, who's close to LIBERTY, said MALONE backed away when the debt climbed to around 70 cents on the dollar.
"It isn't the same deal anymore," the source said.
"Nevertheless, sources said not to count out MALONE completely. These people point out that LIBERTY MEDIA continues to watch UNIVISION, and add that MALONE is legendary for his patient and predatory investing style, setting the stage for him to make another move if the debt's price falls again.
"MALONE would have made the investment through his LIBERTY CAPITAL unit, the same shop that bought up more than $500 million in SIRIUS XM debt in exchange for a 40% stake in the satellite-radio company."