MediaCo Takes Over Estrella Media

[lanceventa]

MediaCo, the owners of Hot 97 and WBLS New York are taking control of Estrella Media immediately including all programming of Estrella's radio stations in Dallas, Houston, Los Angeles, and Riverside/San Bernardino.

The deal seemingly plays out as an immediate merger, with some Estrella executives joining MediaCo and the licenses being retained by the parent to allow immediate closing.

MediaCo Acquires Estrella Media’s Content Operations; To Program Radio Licenses

MediaCo Holding, owners of Hip Hop "Hot 97" WQHT and Adult R&B 107.5 WBLS New York, have announced the acquisition

radioinsight.com

 

[RadioGuy1864]

Interesting. I wonder if this is somehow related to the upcoming sale of 98.7 in NY

 

[Weiserguy]

The deal seemingly plays out as an immediate merger, with some Estrella executives joining MediaCo and the licenses being retained by the parent to allow immediate closing.

Am I old-fashioned, or doesn't the FCC have some say in whether an action like this gets approved (or not)?

 

[radiofan2023]

Am I old-fashioned, or doesn't the FCC have some say in whether an action like this gets approved (or not)?

The article says Estrella is keeping the licenses.

 

[Kent]

Am I old-fashioned, or doesn't the FCC have some say in whether an action like this gets approved (or not)?

LMA's are required to be in the public files, but, so long as Estrella maintains control of the license, the agreement is legal and doesn't require further FCC review. The FCC will review if complaints are filed.

Given that the licenses will most likely eventually be transferred, the FCC will have a say then.

 

[lanceventa]

Interesting. I wonder if this is somehow related to the upcoming sale of 98.7 in NY

I don't know if 98.7 is in play, but I'm told MediaCo may have further deals coming.

Am I old-fashioned, or doesn't the FCC have some say in whether an action like this gets approved (or not)?

As @Kent mentioned above, no license transfers involved yet, so no FCC approval required. Technically MediaCo acquired the EstrellaTV video networks and the right to program their local TV and Radio licenses.

There are likely greater television implications. MediaCo is mostly held by Soo Kim's Standard General, who were part of the combined failed deal with Apollo to purchase TEGNA. Standard Media CEO Deb McDermott is now also Chair of MediaCo and previously ran Young Broadcasting and Media General.

 

[Identnut]

I don't know if 98.7 is in play, but I'm told MediaCo may have further deals coming.

If this means Estrella is aiming for a station in NYC I don't see it happening. Estrella is culturally Mexican to the core. I don't see Regional Mexican working in New York, let alone them trying an East Coast-style Caribbean Rim format.

 

[lanceventa]

If this means Estrella is aiming for a station in NYC I don't see it happening. Estrella is culturally Mexican to the core. I don't see Regional Mexican working in New York, let alone them trying an East Coast-style Caribbean Rim format.

You're looking at it backwards. There NO LONGER is an Estrella. MediaCo bought them. This is about their growth. Estrella is no more.

 

[101.9 La Kalle]

If this means Estrella is aiming for a station in NYC I don't see it happening. Estrella is culturally Mexican to the core. I don't see Regional Mexican working in New York, let alone them trying an East Coast-style Caribbean Rim format.

If MediaCo/Estrella wanted to go for a Spanish station, it'd probably be a Latin Hot A/C station.

 

[Mediafrog+]

I’m in Houston where Estrella has both TV and radio assets. The two radio formats have been doing rather well lately, so there may not be any immediate changes. We do have SBS about to enter the market, so that could stir things up a bit.

There are likely greater television implications. MediaCo is mostly held by Soo Kim's Standard General, who were part of the combined failed deal with Apollo to purchase TEGNA. Standard Media CEO Deb McDermott is now also Chair of MediaCo and previously ran Young Broadcasting and Media General.

Yeah, there are more changes coming down the road, I would think. I suspect they might wait to see how the 2024 elections turn out, which would influence any further deals. I still think TEGNA, or at least pieces of it, might be in play.

 

[PTBoardOp93]

Not everyday you see a company executing a merger mere days after a "going concern" warning from their auditor was published.

Lance's report does suggest that MediaCo has been recapitalized with a loan from WhiteHawk Capital in order to execute this transaction.

 

[davideduardo]

If MediaCo/Estrella wanted to go for a Spanish station, it'd probably be a Latin Hot A/C station.

There have been incessant rumors on the street in LA that the Spanish formats are going to be gone.

There is no such thing as "Latin Hot A/C" unless you mean an English language rhythmic Hot A/C aimed at Hispanics and many non-Hispanic whites that love rhythmic music. In Latin America, the equivalent of CHR stations have a bit larger libraries and none of the 80 to 120 weekly spins on powers; they already are, mechanically, Hot A/C stations.

The signals that Estrella has (they are still the licensee) in LA are a combo of three Class A FMs with limited coverage each. Together, they still miss a lot of the market, including the eastern San Gabriel Valley, Lancaster/Palmdale and the Santa Clarita area.

 

[Mediafrog+]

There have been incessant rumors on the street in LA that the Spanish formats are going to be gone.

But elsewhere? You would think the current formats in DFW and Houston are relatively safe, unless one signal gets spun out...for instance KBOC in DFW going to EMF for K-Love.

 

[101.9 La Kalle]

There is no such thing as "Latin Hot A/C" unless you mean an English language rhythmic Hot A/C aimed at Hispanics and many non-Hispanic whites that love rhythmic music. In Latin America, the equivalent of CHR stations have a bit larger libraries and none of the 80 to 120 weekly spins on powers; they already are, mechanically, Hot A/C stations.

Let me phrase that better, Latin Rhythmic.

 

[Kent]

There have been incessant rumors on the street in LA that the Spanish formats are going to be gone.

The signals that Estrella has (they are still the licensee) in LA are a combo of three Class A FMs with limited coverage each. Together, they still miss a lot of the market, including the eastern San Gabriel Valley, Lancaster/Palmdale and the Santa Clarita area.

You know a lot more about this than I do. I'm just not sure what you could do with those sticks. Like you said, those signals have limited coverage, and any deficiency they have in covering the Spanish speaking audience would seem to also apply to the English speakers.

 

[lanceventa]

Let me phrase that better, Latin Rhythmic.

Would this ne the most played song?

 

[davideduardo]

Let me phrase that better, Latin Rhythmic.

Again, a term derived from United States English language formats that don't exist in Spanish.

Rhythmic can mean a reggaetón and trap based youth format. It can mean all-salsa in Puerto Rico, or merengue & bachata in the Dominican Republic or all-Vallenato in Colombia... to give a few examples.

All music from Latin America is "Latin" so that word is superfluous. And "rhythmic" can cover many totally different kinds of music.

 

[101.9 La Kalle]

Again, a term derived from United States English language formats that don't exist in Spanish.

Rhythmic can mean a reggaetón and trap based youth format. It can mean all-salsa in Puerto Rico, or merengue & bachata in the Dominican Republic or all-Vallenato in Colombia... to give a few examples.

Reggaetón / Dembow / (Modern) Latin Pop / Trap. That's what I mean by "Latin Rhythmic."