12:56pm PT by Eriq Gardner
Univision Hit With $2 Million Lawsuit Over Purchase of The Onion
If Univision goes ahead and sells off The Onion, its ownership of the satirical website will have been short-lived. Nevertheless, one financial advisory firm wants to be paid.
GCA Advisors has filed suit against Univision in New York
According to the complaint, the firm was engaged to act as The Onion's financial advisor in connection with a possible "transaction" back in 2013. For such advisory services, GCA says it was promised a $2 million base fee if a transaction was consummated within the term of the agreement or 12 months after the agreement's termination.
The Onion terminated the agreement in April 2015. The following January, Univision announced that it had acquired a 40.5 percent interest in The Onion for $27.1 million.
GCA now points to securities filings, press releases and the announcement that the Gizmodo Media Group and The Onion are now being sold by Univision.
"Accordingly, a Transaction was consummated by The Onion within the terms of the Agreement — including 'a merger, business or other similar change of control transaction' 'within 12 months after the effective date of termination' of the Agreement," states the complaint.
The Onion is being sued for alleged breach of contract, while Univision is hit with a claim for tortious interference. Here's the complaint.
Univision hasn't yet responded to a request for comment.