Hispanic Radio Company Expands to TV
Miami-based Spanish Broadcasting System Inc. on Wednesday announced a deal to buy WDLP-TV (Ch. 22) and other television assets serving greater Miami, expanding beyond its base in radio into Spanish-language TV.
SBS said it would pay $37.5 million for the TV venture that now is owned by William De La Peña and reaches about 1.5 million homes in the Miami-Fort Lauderdale area.
The deal is expected to close in the fourth quarter, pending approval by the Federal Communications Commission.
The move comes amid a boom in Hispanic media and a trend toward multimedia ventures linking TV, radio, print and Internet distribution.
SBS already operates three radio stations in the Miami area: "Romance 106.7" (WRMA, FM 106.7), "Clasica 92" (WCMQ, FM 92.3), and "El Zol 95" (WXDJ, FM 95.7).
The company said "cross-promotion" of its radio and TV properties will be key in its operations strategy.
The deal gives SBS a foothold in one of the top markets for Hispanic TV in the United States. Last year, marketers spent about $130 million on Hispanic TV ads in greater Miami, with that outlay expected to reach $140 million this year, SBS said.
Greater Miami also has among the highest income levels among Latinos nationwide and is home to many of the nation's largest Hispanic-owned companies.
"The Spanish-language media universe of South Florida, our home market, presents a unique and logical entry point for our debut in television. This is a highly complementary transaction," SBS Chief Executive Raul Alarcón said in a statement.
SBS said it intends to fund the purchase and the new venture with cash on hand and from operations. The company reported its best year in 2004, with net revenues up 17 percent to $156.4 million and net income rising nearly fivefold to $16.1 million.
After a pending sale, it will own and operate 20 radio stations in the top U.S. Hispanic markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, plus LaMusica.com, a bilingual Spanish-English Web site.
Shares in SBS fell 10 cents Wednesday to close at $9.87 on the Nasdaq, off from a 52-week high of $11.21 in March.
SBS said it would pay $37.5 million for the TV venture that now is owned by William De La Peña and reaches about 1.5 million homes in the Miami-Fort Lauderdale area.
The deal is expected to close in the fourth quarter, pending approval by the Federal Communications Commission.
The move comes amid a boom in Hispanic media and a trend toward multimedia ventures linking TV, radio, print and Internet distribution.
SBS already operates three radio stations in the Miami area: "Romance 106.7" (WRMA, FM 106.7), "Clasica 92" (WCMQ, FM 92.3), and "El Zol 95" (WXDJ, FM 95.7).
The company said "cross-promotion" of its radio and TV properties will be key in its operations strategy.
The deal gives SBS a foothold in one of the top markets for Hispanic TV in the United States. Last year, marketers spent about $130 million on Hispanic TV ads in greater Miami, with that outlay expected to reach $140 million this year, SBS said.
Greater Miami also has among the highest income levels among Latinos nationwide and is home to many of the nation's largest Hispanic-owned companies.
"The Spanish-language media universe of South Florida, our home market, presents a unique and logical entry point for our debut in television. This is a highly complementary transaction," SBS Chief Executive Raul Alarcón said in a statement.
SBS said it intends to fund the purchase and the new venture with cash on hand and from operations. The company reported its best year in 2004, with net revenues up 17 percent to $156.4 million and net income rising nearly fivefold to $16.1 million.
After a pending sale, it will own and operate 20 radio stations in the top U.S. Hispanic markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, plus LaMusica.com, a bilingual Spanish-English Web site.
Shares in SBS fell 10 cents Wednesday to close at $9.87 on the Nasdaq, off from a 52-week high of $11.21 in March.
Tags: hispanic business
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