Univision will reduce its investment stake in a fellow Spanish-language
broadcaster in order to win government approval for its $3 billion acquisition
of Hispanic Broadcasting Corp.
Univision announced Thursday it has reached agreement with the Justice
Department to cut its 27 percent stake in Entravision Communications to 10
percent over the next six years.
Univision also agreed to convert all of its Entravision stock to a new class
of non-voting preferred shares.
Univision will, however, retain rights to vote on any possible merger, sale,
liquidation of Entravision or the sale of any Entravision TV station affiliated
with a Univision network.
Univision and Hispanic will hold shareholder meetings Friday to approve the
Following FCC ruling on the merger, expected shortly, the companies plan to
consummate the merger March 14.
The FCC suspended the its review of the merger in early February.
Univision, the No. 1 Spanish-language television group in the United States,
announced in June that it would buy radio giant HBC in an all-stock