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Viacom Gets Stake in Spanish Broadcasting

Oct 5, 2004  •  Post A Comment

In a move that will grant it access to the burgeoning Spanish-language media space, media giant Viacom on Tuesday inked an agreement with Spanish Broadcasting System under which Viacom will buy a stake in SBS in exchange for an FM station in San Francisco.

Specific financial terms were not disclosed. But under the agreement, Viacom gets a 10 percent stake in SBS, with an option to increase the interest to 15 percent, in exchange for Viacom’s Infinity Broadcasting unit merging an FM station in San Francisco with SBS, creating what Viacom and SBS describe as the single most powerful Spanish-language radio station in the market.

Beyond the station deal, the two companies also agreed to join forces to target Hispanic consumers through television, radio and outdoor advertising throughout the United States.

Analyst David Joyce viewed the transaction as a positive for Viacom, providing the company with an entr%E9;e into a “highly coveted broadcasting subsector.”