CHICAGO — Spanish-language media giant Univision has bought a controlling stake in Chicago-based satirical news website The Onion — and could buy the entire company.
Onion CEO Mike McAvoy wrote to his staff Tuesday confirming the deal with what he acknowledged “might at first seem like an unusual partner.”
McAvoy did not specify the terms of the deal but said Univision has the financial muscle to help The Onion grow.
“As an independent media company, we’ve always been forced to run a tight financial ship, which has made us smart and lean, but not always ready to invest in the great new ideas that we come up with,” McAvoy wrote. “I’m excited to see what we can do with Univision behind us.”
Though Univision is best known for Spanish-language television targeting first-generation immigrants, it has branched out into English-language programming in an attempt to win over younger viewers, teaming up with Disney-ABC to launch the English-language Fusion network in 2013.
Last year it purchased The Root, an African-American culture website founded by Harvard scholar Henry Louis Gates Jr.
Isaac Lee, Univision’s chief news and digital officer, said the deal with The Onion will help Univision connect with millennials. “Comedy is playing an expanding role in our culture as a vehicle for audiences to explore, debate and understand the important ideas of our time,” he said. “It has also proven to be an incredibly engaging format for millennial audiences and is expected to play a key part in the 2016 presidential election process via our robust content offerings in Spanish and English.”
While The Onion will continue to operate independently, Univision will have “oversight” and will help it develop digital and broadcast products, Univision said.
Founded in 1988 in Madison, Wis., The Onion moved to New York in 2001, then to Chicago in 2012. It ceased publishing a print edition a year later but has continued publishing online, also launching ClickHole, a sister site that parodies viral content, and StarWipe, which parodies celebrity news.
McAvoy said in his memo to staff that Univision’s Fusion network had produced shows that were well reviewed by A.V. Club, The Onion’s cultural review — evidence, he said, that Univision has an “editorial-first mindset” that will fit well with The Onion.
The Onion had been looking for a partner for the last year, he wrote, adding, “We’ve got an incredible team across the board right now, and there are no plans to change that. If anything, I would expect to see more talented hires and bigger opportunities for everyone in the coming year.”
In late 2014, The Onion hired investment bank GCA Savvian to seek investment capital for the business, which was purchased in 2001 by a group led by money manager David Schafer.
“Onion Inc. has remained successful by putting editorial first. We’re excited to partner with Univision, a company that understands and appreciates that foundation, and that can provide additional resources, expertise, and opportunity for our talented staff,” McAvoy said.
