The deal, valued at $2.7 billion, was announced last October. The acquisition gives NBC ownership of the Telemundo Network, a 24-hour Spanish-language network reaching 90% of the Hispanic population, 11 full-power owned-and-operated stations, and two growing cable networks, Mun2 and Telemundo Internacional.
The acquisition is the largest in the history of NBC, a division of General Electric. Telemundo was privately held by Sony Pictures Entertainment, Liberty Media and a consortium of financial investors. Under terms of the transaction, equity is valued at $1.98 billion, which was paid in cash. NBC assumes debt estimated at $700 million.
"This transaction represents NBC's strong commitment to growing our network business and serving the needs of the booming Hispanic market," said Bob Wright, Vice Chairman of General Electric and Chairman and CEO of NBC. "Not only is this the largest acquisition by NBC, it is one of the biggest commitments made by any corporation to the dynamic Hispanic population."
"We expect great things from this partnership," said Andrew Lack, President and COO of NBC. "The combined talent and resources of our two networks creates tremendous programming opportunities. Clearly, the biggest beneficiaries of this collaboration are the viewers."
Telemundo will continue under the leadership of CEO Jim McNamara, formerly CEO of New World Entertainment and President of Universal TV. McNamara assumed the position with Telemundo in July 1999 and will report to Lack. Alan Sokol, who joined Telemundo from Sony Pictures in 1998, continues as COO.
"On behalf of the 1,900 Telemundo employees in the U.S. and Puerto Rico, we are thrilled to become part of the NBC family," said McNamara. "NBC offers tremendous resources to help us fulfill our vision of making Telemundo a powerful force in Spanish-language broadcasting."
Ten full-power owned-and-operated stations in top Hispanic U.S. DMAs
-- Los Angeles (2)/KVEA & KWHY
-- New York/WNJU
-- Miami-Fort Lauderdale/WSCV
-- Dallas-Fort Worth/KXTX
-- San Francisco-San Jose/KSTS
-- San Antonio/KDVA
-- Puerto Rico/WKAQ
-- Affiliations with 40 broadcast stations
-- Two cable networks: Mun2 and Telemundo Internacional