Will Entravision sell their Denver Properties?

[Radiogeek500]

They've been selling off quite a bit lately. They just got rid of San Francisco and word is Dallas is toast.

What about Denver? Wouldn't it be ironic to see Univision(HBC) get 96.5 and 92.1, 6 years after the DOJ nixed the 96.5 sale due to Clear Channel owning a piece of HBC stock. CC of course has since rid itself of the HBC/Univision stock. Make sense too, Entravision just signed a syndie deal for Pilon from KSCA to carry him in Phoenix and Denver among others, I'm sure part of that deal is that if Entravision does spin off Denver, Univision has first dibs at the trio<P ID="signature">______________
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[Kent]

Rumor is that Entravision is looking to get out of radio, period. However, it's anyone's guess as to who would be buying. With Univision being for sale itself, the radio division might go to another operator altogether. After all, most of the TV suitors rumored to be interested in Univision have little-to-no interest in radio. Univision and Entravision are often referred to as cousins because they are very close and share some of the same investors. If I remember correctly, Univision was an investor in Entravision and owned a sizeable chunk of stock in the company that it's now trying to divest to satisfy DOJ concerns with its purchase of HBC. I could see Univision engaging in a stock-for-radio transaction involving Denver much like they did with San Francisco, though it's any outsider's guess as to how Univision is going to get rid of the rest of its Entravision stock. I tend to think some Dallas stations will be involved in that deal. Once again, though, that's just a guess. I believe they have 1-3 weeks to figure out how to get rid of the rest of it.

I doubt there was any agreement that Univision would have right of first refusal on the Entravision stations. After all, Univision wasn't involved in the sale of KXPK to Entravision (Entravision purchased it from Emmis), and I haven't seen any evidence that Univision fronted the money for Entravision to buy that station. Rights of first refusal on individual properties normally come from agreements where the purchaser has some help from another company or buys from a company that really doesn't want to let the station go to begin with. Program supplier agreements usually have little to do with first refusal rights on purchasing stations. Any agreement for Univision to get right of first refusal would more than likely have come later as part of another deal.

 

[Ed_Walker]

> Rumor is that Entravision is looking to get out of radio,
> period. However, it's anyone's guess as to who would be
> buying. With Univision being for sale itself, the radio
> division might go to another operator altogether.

Would it be possible to see another big radio company purchase
either Entravision or Univision to get their foot into hispanic
radio?

It certainly couldn't be Clear Channel; they're at their limits
in most markets. Infinity? Emmis? Entercom?

 

[Kent]

> Would it be possible to see another big radio company
> purchase
> either Entravision or Univision to get their foot into
> hispanic
> radio?

Well, I think it's too soon to say what will happen at this point. After all, there are several dark horse bidders who may have a better shot at getting Univision than anyone thinks. I know at least one of the Televisa execs recently moved to the US, Florida I believe, with the intent of becoming a US citizen and making a run at Univision. Given how long it takes to become a citizen anymore, who knows what shot he has at getting Univision, but it would definitely change the picture if he wins. As for whether or not it's possible for another big radio company to purchase Univision or Entravision, I'd say it's definitely possible, but I don't know how likely.

> It certainly couldn't be Clear Channel; they're at their
> limits
> in most markets. Infinity? Emmis? Entercom?

I have to think Infinity would end up with SBS if they were to end up with any of the big Spanish-language broadcasters. After all, they already own a stake in it, and it would be easier, though by no means easy, to absorb SBS than it would Univision. I've actually thought Entercom would be a better choice than many realize for Univision Radio. I remember reading a trade magazine a few years ago that said Entercom operated a Spanish-language station in the late 60's/early 70's when it was a new company. I have no idea which station it was as the magazine didn't say. I remember Entercom had a lot of classical and beautiful music stations in the early 80's, but I don't know what their formats were prior to about 1982.

 

[radioman12]

> > Rumor is that Entravision is looking to get out of radio,
> > period. However, it's anyone's guess as to who would be
> > buying. With Univision being for sale itself, the radio
> > division might go to another operator altogether.
>
> Would it be possible to see another big radio company
> purchase
> either Entravision or Univision to get their foot into
> hispanic
> radio?
>
> It certainly couldn't be Clear Channel; they're at their
> limits
> in most markets. Infinity? Emmis? Entercom?
>
What about Regent communications? They only own stations up here in Northern Colorado.
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[davideduardo]

> They've been selling off quite a bit lately. They just got
> rid of San Francisco and word is Dallas is toast.

They have only sold in markets where they have no TV station to build a cluster. Denver is an Entravision TV market. Sale very doubtful.
>
> What about Denver? Wouldn't it be ironic to see
> Univision(HBC) get 96.5 and 92.1, 6 years after the DOJ
> nixed the 96.5 sale due to Clear Channel owning a piece of
> HBC stock. CC of course has since rid itself of the
> HBC/Univision stock. Make sense too, Entravision just signed
> a syndie deal for Pilon from KSCA to carry him in Phoenix
> and Denver among others,

Not Phoenix. Piolin is on UVN's KHOT/KHOV.

 

[davideduardo]

> Rumor is that Entravision is looking to get out of radio,
> period.

That is now what Walter Ullo said on last investor call. They are commited to radio, especially in markets where they have TV as well.

> With Univision being for sale itself, the radio
> division might go to another operator altogether. After
> all, most of the TV suitors rumored to be interested in
> Univision have little-to-no interest in radio.

All press reports indicate a private equity buyer. None of the "suggested" TV companies could even own the network O&O group without significant divestiture.

> Univision
> and Entravision are often referred to as cousins because
> they are very close and share some of the same investors.
> If I remember correctly, Univision was an investor in
> Entravision and owned a sizeable chunk of stock in the
> company that it's now trying to divest to satisfy DOJ
> concerns with its purchase of HBC.

All interst was sold.

> I could see Univision
> engaging in a stock-for-radio transaction involving Denver
> much like they did with San Francisco, though it's any
> outsider's guess as to how Univision is going to get rid of
> the rest of its Entravision stock.

It does not have any.

> I tend to think some
> Dallas stations will be involved in that deal.

Univision has a full portfolio in Dallas. TV and radio.

 

[davideduardo]

> Well, I think it's too soon to say what will happen at this
> point. After all, there are several dark horse bidders who
> may have a better shot at getting Univision than anyone
> thinks. I know at least one of the Televisa execs recently
> moved to the US, Florida I believe, with the intent of
> becoming a US citizen and making a run at Univision.

In press reports, it is suggested that the Venezuelan Cisneros family is making a bid, as well as several private equity companies. Televisa has announced in a filing last week with the Mexican Bolsa that they are not bidding at present.

>
> I have to think Infinity would end up with SBS if they were
> to end up with any of the big Spanish-language broadcasters.
> After all, they already own a stake in it, and it would be
> easier, though by no means easy, to absorb SBS than it would
> Univision.

SBS is more than 50% owned by the Alarcon family. As long as they live, a sale is unlikely.

> I've actually thought Entercom would be a better
> choice than many realize for Univision Radio. I remember
> reading a trade magazine a few years ago that said Entercom
> operated a Spanish-language station in the late 60's/early
> 70's when it was a new company.

KBRG, now KITS, in SF. I interviewed for GM in the early 80's, but theyhad no commitment to it and I took a pass.