Heralding what may be a new era of mergers of media giants, NBC said it has completed its $2.7 billion takeover of Telemundo Communications Group Inc., whose flagship is the nation's second-largest Spanish network, reaching 86 markets and 90 percent of Hispanic households nationwide.
The deal includes 10 stations, including KVEA and KWHY in Los Angeles, KNJU in New York and stations in Miami-Fort Lauderdale, Houston, Chicago, Dallas-Fort Worth, San Francisco-San Jose, San Antonio, Denver and Puerto Rico. Another 40 stations are Telemundo affiliates.
NBC will also get cable networks Mun2 and Telemundo Internacional.
Recent court decisions on cable-broadcast cross-ownership, single-market duopoly and the nationwide ownership cap undercut concerns that the deal would face regulatory hurdles.
"The transaction represents NBC's strong commitment to growing our network business and serving the needs of the booming Hispanic market," said Bob Wright, president and COO of NBC and vice chairman of General Electric Corp., the network's parent. "Not only is this the largest acquisition [ever] by NBC, it is one of the biggest commitments made by any corporation to the dynamic Hispanic population."
Telemundo was owned by Sony Pictures Entertainment, Liberty Media and a consortium of other investors.
Telemundo CEO Jim McNamara will keep his position and report to NBC President and COO Andrew Lack. Alan Sokol will continue as Telemundo's COO.
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