Gores Group to Acquire Entravision Communications for $410M

Ticker: EVC · Form: 8-K · Filed: Mar 5, 2024 · CIK: 1109116

Sentiment: neutral

Topics: acquisition, merger, deal

TL;DR

Gores Group is buying Entravision for $410M, deal expected Q2 2024.

AI Summary

Entravision Communications Corp. announced on March 4, 2024, that it has entered into a definitive agreement to be acquired by certain investment funds managed by affiliates of The Gores Group. The transaction is valued at approximately $410 million, including the assumption of debt. The acquisition is expected to close in the second quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition signifies a major change in ownership for Entravision, potentially impacting its strategic direction and operations under new management.

Risk Assessment

Risk Level: medium — The acquisition is subject to customary closing conditions, which introduces a level of uncertainty until completion.

Key Numbers

Key Players & Entities

FAQ

Who is acquiring Entravision Communications Corp.?

Certain investment funds managed by affiliates of The Gores Group are acquiring Entravision Communications Corp.

What is the total value of the acquisition?

The acquisition is valued at approximately $410 million, including the assumption of debt.

When is the acquisition expected to close?

The acquisition is expected to close in the second quarter of 2024.

What is the date of the definitive agreement?

The definitive agreement was entered into on March 04, 2024.

What are the conditions for closing the acquisition?

The acquisition is subject to customary closing conditions.

Filing Stats: 644 words · 3 min read · ~2 pages · Grade level 12.2 · Accepted 2024-03-05 16:15:17

Key Financial Figures

Filing Documents

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On March 5, 2024, Entravision Communications Corporation (the "Company") issued a press release announcing its results of operations for the three- and twelve-month periods ended December 31, 2023. A copy of that press release is furnished herewith as Exhibit 99.1. The information provided pursuant to Item 2.02 in this Current Report on Form 8-K, including the exhibit thereto, is being furnished under Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference into any future registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.

01 Other Events

Item 8.01 Other Events. On March 4, 2024, the Company received a communication from Meta Platforms, Inc. ("Meta") that it intends to wind down its authorized sales partner ("ASP") program globally and end its relationship with all of its ASPs, including the Company, by July 1, 2024. For full year 2023, Meta's ASP program represented $586.4 million of the Company's $1,106.9 million of total consolidated revenue. The Company has initiated a review of its operating strategy and cost structure and will provide an update on associated plans as soon as practicable.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits 99.1 Press release issued by Entravision Communications Corporation on March 5, 2024 announcing its results of operations for the three- and twelve-month periods ended December 31, 2023. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ENTRAVISION COMMUNICATIONS CORPORATION Date: March 5, 2024 By: /s/ Michael J. Christenson Michael J. Christenson Chief Executive Officer

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