COCONUT GROVE, FLA.: Spanish Broadcasting System agreed to buy KTBU-TV in Houston for $16 million, the media company said today. The station is being sold by U.S. Farm & Ranch Supply Co. The company intends to fund the acquisition from cash-on-hand and free cash flow generated from operations. The deal is expected to close in the third quarter pending regulatory approval.
KTBU will be the second TV station owned by SBS--primarily a radio broadcaster. The company also owns and operates WSBS-TV in Key West, Fla.. WSBS is an independent station that carries Mega TV, the Hispanic programming network also owned by SBS. It will likewise program KTBU, a full-power station reaching around 1.8 million households in Houston, the nation’s fourth largest Hispanic TV market. The signal airs on Digital Ch. 42 and virtual Ch. 55. SBS says Mega is now available to 5.6 million households via affiliates in 11 markets, as well as cable and satellite distribution.
SBS trades on the NASDAQ (SBSA), but is under threat of delisting because the stock price has been less than $1 for too long. The companyis working on executing a reverse stock split that will bring it into compliance, according to Radio-Info, which also says a NASDAQ appeals hearing is scheduled for May 12. Shares are trading late morning today at 85 cents eash.
~ Deborah D. McAdams
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