Spanish Broadcasting System to Acquire Miami Television Station
July 13 2005 - 3:09PM
PR Newswire (US)
Spanish Broadcasting System to Acquire Miami Television Station
Miami's #1 Hispanic Radio Broadcaster to Expand Presence and
Diversify Platforms through Highly Complementary Transaction
COCONUT GROVE, Fla., July 13 /PRNewswire-FirstCall/ -- Spanish
Broadcasting System, Inc. ("SBS"; Nasdaq: SBSA) today announced
that it has entered into an agreement to acquire WDLP-TV (Channel
22) and other television assets serving Miami and South Florida
from Dr. William De La Pena for $37.5 million on terms that were
not disclosed. The acquisition is expected to close in the fourth
quarter of 2005, pending FCC approval. WDLP-TV is a full-power TV
facility reaching approximately 1.5 million households in the Miami
- Ft. Lauderdale DMA through its over-the-air, cable and satellite
distribution. Raul Alarcon, President and CEO of SBS commented,
"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 that will
enable SBS to further increase its ability to serve Miami's
Hispanic community. We fully intend to leverage our resources,
relationships and media expertise to create a viable and compelling
viewing alternative for Hispanic consumers, while providing
advertisers with an ideal platform to reach this rapidly expanding
audience." Miami is the nation's second-largest Hispanic television
revenue market with $130 million in local and national Hispanic TV
advertising expenditures in 2004, projected to grow to over $140
million in 2005. Miami also serves as corporate headquarters for
SBS and its three local owned-and-operated radio stations WRMA-FM
(Romance 106.7), WCMQ-FM (Clasica 92) and the highest-rated
Spanish-language station in the market, WXDJ-FM (El Zol 95). Dr.
William De La Pena stated, "We are absolutely confident that a
recognized broadcaster such as SBS will be able to continue, and
indeed expand upon, the good work we began at Channel 22. We look
forward to working with the SBS team in the future development of
the station." The cross-promotion of its own co-located radio and
TV properties will be a key element in the SBS operational strategy
going forward. The Company intends to fund the acquisition and its
television venture from cash-on-hand and free cash flow from
operations. About Spanish Broadcasting System Spanish Broadcasting
System, Inc. is the largest Hispanic-controlled radio broadcasting
company in the United States. After giving effect to a pending
divestiture, the Company will own and operate 20 radio stations in
the top Hispanic markets of New York, Los Angeles, Miami, Chicago,
San Francisco and Puerto Rico, including the #1 Spanish-language
radio station in America, WSKQ- FM in New York City. The Company
also operates LaMusica.com, a bilingual Spanish-English online site
providing content related to Latin music, entertainment, news and
culture. The Company's corporate site can be accessed at
http://www.spanishbroadcasting.com/. DATASOURCE: Spanish
Broadcasting System, Inc. CONTACT: Tomas Johansen +1-305-441-6901,
ext. 525, , for Spanish Broadcasting System, Inc. Web site:
http://www.spanishbroadcasting.com/
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