Hemisphere Media’s Private Equity Buyout Draws Investor Lawsuit

May 30, 2023, 6:22 PM UTC

Former Hemisphere Media Group Inc. investors sued Searchlight Capital Partners LP, which led its 2022 take-private buyout, claiming the transaction and a side deal with TelevisaUnivision Inc. were tainted by self-dealing.

In addition to Searchlight, the lawsuit targets former senior leaders of Hemisphere, along with the Searchlight portfolio company that acquired it. The suit accuses the Hemisphere ex-board of effectively letting Searchlight set the buyout’s terms, then manipulating a shareholder vote by counting a board member’s investment vehicle as independent.

At the same time, the “supine” board allowed Searchlight to negotiate a related transaction involving the $125 million sale ...

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