FCC Approves Hispanic-Univision Merger

The FCC granted clearance for the $3.5 billion merger between Hispanic Broadcasting Corp. (HBC) and Univision Communications. The merger combines HBC's 68 full-service radio station licenses and 6 FM translator licenses with Univision's 32 full-service broadcast television licenses. It was determined by the FCC that the combined company would not violate the commission's current Radio/TV Cross-Country Ownership rule, nor does it violate the cross-media limits regarding ownership of television and radio stations in the same market.

Each share of HBC common stock has been converted into the right to receive .85 shares of Univision Class A common stock, giving HBC shareholders approximately 26.5 percent of the enlarged Univision's economic ownership. There will be no further trading of HBC common stock.

Clear Channel Communications, which owns 1,200 full-service radio stations, will have a small 3.66 percent post-merger voting stock interest in Univision. The transaction will result in Clear Channel having a lower percentage of ownership in HBC.

As part of the transaction, Univision agreed to convert its voting stock interest in Entravision into a new class of non-attributable, nonvoting stock interest, with no consent or voting rights other than the right to approve a merger, sale or liquidation, particularly the sale by Entravision of a television station affiliated with a Univision-owned network.