December 8, 2000
Univision Communications Inc. and USA Networks, Inc. jointly announced that Univision will acquire USA Broadcasting, the television station group of USA Networks, for $1.1 billion in cash. The acquisition will expand Univision's ability to serve the Hispanic community and will provide the company with duopolies in seven of the top eight Hispanic markets. It is expected to be accretive during the first full year of operation.
USA Broadcasting, a division of USA Networks, Inc.'s Entertainment unit, is the tenth largest television broadcast group in the nation. Under the agreement, Univision will acquire USA Broadcasting's 13 fully owned full-power stations as well as USA Network's minority interests in four additional full-power stations as well as USA Network's minority interests in four additional full-power stations. Univision currently owns and operates 12 full-power and seven low-power television stations, including full-power stations in 11 of the top 15 U.S. Hispanic markets.
"As the U.S. Hispanic market continues to expand, we believe there will be tremendous demand for Spanish-language entertainment," said A. Jerrold Perenchio, Chairman and Chief Executive Officer of Univision. "The stations that we are purchasing from USA Broadcasting are highly complementary to our existing broadcast assets, and we will be able to significantly leverage the combined assets in order to realize greater value and provide our viewer base with additional Spanish-language content."
USA Broadcasting's fully owned stations are in the key market of Los Angeles, New York, Chicago, Philadelphia, Boston, Miami, Dallas, Atlanta, Tampa, Houston, Cleveland and Orlando and the stations in which it has a minority interest are in San Francisco, Washington, D.C., Denver and St. Louis.
"I am glad that when we made the decision to sell the stations, we found a willing buyer that is as fine a company and broadcaster as Univision," said Barry Diller, Chairman and CEO USAi.
The acquisition, which has been approved by the Boards of Directors of both companies, is subject to regulatory approvals and customary closing conditions.