Co. cuts stake in Santa Monica-based Entravision
Univision Communications has completed its $90 million purchase of Entravision Communications Corp.’s FM station KBRG and AM station KLOK, serving the San Francisco/San Jose market.
In doing so, it has also cut its stake in Santa Monica-based Entravision, as demanded by the Dept. of Justice in 2003 when Univision bought Spanish-language radio company Hispanic Broadcasting Corp. for $2.3 billion.
The DoJ wants Univision, the dominant Spanish language broadcaster in the U.S., to trim its holding in Entravision from 27% to 15% by March 26 and to 10% by 2009. Univision bought the radio stations with about 12.6 million shares of Entravision Class U stock, thereby cutting its holding to 19.8%
Station purchase, announced Tuesday, bolsters cross-promotions for Univision in the key northern California market and boosts the growing radio biz.
Univision now owns or operates 67 radio stations in 16 U.S. markets plus four stations in Puerto Rico; in May 2005, it introduced a reggaeton-based format, La Kalle.
Entravision owns and operates 47 TV stations and nearly 60 radio stations across the country.