Univision To Acquire KBRG, KLOK

Univision Communications will acquire the Southbay's Radio Cumbia (KLOK/1170) and Radio Romantica (KBRG/100.3) from Entravision Holdings in a deal valued at $90 million.

The transaction will help Univision satisfy a Department of Justice decree requiring the company to lower its ownership stake in Entravision. Univision agreed to the stipulation as part of its 2003 acquisition of Hispanic Broadcasting Corporation, and will reduce its ownership in Entravision to 20% as a result of the KBRG/KLOK deal.

Univision is required to reduce its stake to 15% by March 26, 2006, and is expected to pay for the stations by returning shares of Entravision common stock that it currently controls back to the company.

"Our acquisition of KBRG and KLOK accomplishes two important strategic goals for Univision Radio; it will expand our format offerings in the growing
San Francisco/San Jose market and increase the distribution of our popular national AM radio network, RadioCadena," Univision Radio COO Gary Stone said in a prepared statement.

Ray Rodriguez, President and Chief Operating Officer of Univision Communications, added, "We are confident that these stations will benefit from the tremendous cross promotion opportunities provided by Univision's two television stations and four other radio stations in the market."

The transaction is expected to close in the first quarter of 2006.

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