Radio station group Spanish Broadcasting System is broadening its reach into the television sector, unveiling a $37.5 million deal to acquire WDLP-TV and other TV assets serving Miami and South Florid
NEW YORK (The Hollywood Reporter) -- Radio station group Spanish Broadcasting System is broadening its reach into the television sector, unveiling a $37.5 million deal to acquire WDLP-TV and other TV assets serving Miami and South Florida.
The Coconut Grove, Fla.-based company signaled that the planned takeover in its backyard might be only the first move into the TV space, which will allow it to cross promote its assets and sell commercials across them.
"The Spanish-language media universe of South Florida, our home market, presents a unique and logical entry point for our debut in television," SBS president/CEO Raul Alarcon said in a statement.
The move into TV also means that SBS could follow more closely the cross-media strategies of larger Hispanic media rival Univision Communications as well as Entravision Communications, which also owns radio and TV stations.
SBS said it expects to close the takeover in the fourth quarter, pending Federal Communications Commission approval.
WDLP-TV (Channel 22) reaches about 1.5 million homes in the Miami-Fort Lauderdale market via over-the-air, cable and satellite TV distribution.
SBS already owns three radio stations in Miami: WRMA-FM (Romance 106.7), WCMQ-FM (Clasica 92) and top-rated WXDJ-FM (El Zol 95).
Miami is the second-largest Hispanic TV revenue market in the U.S., with $130 million in local and national advertising spending last year, projected to grow to more than $140 million this year, according to SBS.
Overall, advertising for Spanish-language media also has outpaced the broader market in recent years.
Alarcon owns a 33% economic stake in SBS and controls 80% of the voting power. Viacom Inc.'s Infinity Broadcasting radio unit has taken a 15% stake in the firm to have a hand in the fast-growing Hispanic media market.
SBS owns and/or operates 20 radio stations in seven of the top 10 U.S. Hispanic markets, including New York, Los Angeles and Chicago.