MIAMI — Univision Communications has announced an agreement to acquire two radio stations serving San Francisco/San Jose from Entravision Communications for $90 million.
Univision expects to pay for the stations with Entravision stock, a first step in reducing its stake in the company, as called for under an agreement Univision reached in 2003 with the Justice Dept. when the media group purchased Spanish-language radio company Hispanic Broadcasting Corp.
Univision agreed to reduce its stake in Entravision to 15% by the end of March 2006. Entravision is the largest affiliate of Univision, operating Univision and Telefutura broadcast TV stations. Entravision has other Spanish-language radio stations and outdoor advertising interests.
Deal for Univision to acquire radio stations KBRG-FM and KLOK-AM will reduce its stake in Entravision to approximately 20%.
Univision foresees cross-promotional possibilities with the deal. It has two TV stations and four other radio stations serving that California market.
Subject to regulatory approvals, deal is expected to close in the first quarter of 2006.