In a shocking turn of events, TelevisaUnivision, a powerhouse in Spanish-language television production and broadcasting, is contemplating the immediate removal of its chief executive officer, Wade Davis. This decision comes as the board prepares to convene this week to assess the situation, according to sources who spoke on the condition of anonymity, citing the sensitivity of the discussions.

Daniel Alegre, the former president and CEO of Activision Blizzard, has reportedly emerged as a strong contender for the top position at TelevisaUnivision. Under the proposed plan, Davis would not vanish entirely from the company—he would transition to the role of vice chairman while retaining a shareholder stake.

This potential leadership change marks a significant shift for TelevisaUnivision, especially considering Davis's instrumental role in forming the company following its merger in 2022. During his tenure, the broadcaster has garnered a loyal following among Spanish-speaking viewers, with local anchors enjoying celebrity status within their communities.

However, despite the network's popularity, financial challenges continue to plague the company. Since the merger, it has struggled to hit internal budgetary goals, and recent forecasts suggest that it is unlikely to meet its financial objectives this year. Experts say the company remains burdened by approximately $9.8 billion in debt—a small decrease from $9.9 billion shortly after the merger—and its profits dropped from $1.69 billion in 2022 to $1.61 billion last year.

TelevisaUnivision rose to prominence in the Spanish-language media landscape with significant backing from major investors like Google and Softbank. The $4.8 billion deal that unified Univision with Televisa, its principal programming provider, was orchestrated by Davis, who previously led a buyout of Univision from a private-equity consortium in 2020.

Davis aimed to prioritize streaming and digital content during his leadership, making strategic acquisitions such as the Spanish-language streaming service Vix and the ad-supported service PrendeTV. His focus on these initiatives was reminiscent of his previous role at Viacom, where he facilitated the acquisition of PlutoTV.

Notably, while the media landscape has shifted and traditional companies struggle with profitability, Univision did experience an uptick in ad revenue last year, increasing by 8% to $2.98 billion. Yet, the broader challenges remain evident, particularly as cable providers are becoming increasingly reluctant to pay elevated fees for programming.

In a further shake-up, TelevisaUnivision's highly respected news anchor, Jorge Ramos, known for his decades-long association with the network, has announced his departure. Ramos, a figure synonymous with Univision's flagship newscast “Noticiero Univision,” will remain with the company through the U.S. presidential election in November, marking the end of an era for the network.

As TelevisaUnivision navigates these tumultuous waters, all eyes will be on the board's decision and the future trajectory of one of the most influential players in the Spanish-language media industry. Will Daniel Alegre take the helm, or will Wade Davis hold onto his position, albeit in a diminished capacity? Only time will tell.