Co. exercising an option to buy WLII and WSUR
Univision Communications, the largest U.S. Spanish-language television and radio broadcaster, will pay about $190 million to buy two leased television stations in Puerto Rico, where the company also owns two radio stations.
Univision is exercising an option to buy WLII and WSUR, the company said Tuesday in a U.S. Securities and Exchange Commission filing. The acquisitions fit with Los Angeles-based Univision’s strategy of owning radio and television stations in the same areas so it can offer advertising packages and reduce selling costs, said JB Hanauer & Co. analyst David Joyce in Hallandale, Fla.
“They think it’s good for advertisers to be able to purchase a market in a number of different platforms,” Joyce said. “I think there are some minor cost savings by having both radio and TV properties in one market.”
Sales at Univision’s television networks and stations increased 16% to $328.1 million in the quarter ended Sept. 30 as the company attracted viewers to soccer games and primetime telenovelas. The company reported net income of $73.4 million on revenue of $477.4 million.
Brooke Morganstein, a New York-based spokeswoman for Univision, declined comment beyond the company’s filing.
Univision shares fell 25¢ to $28.33 Tuesday in New York Stock Exchange composite trading. The shares have fallen 29% this year.