U.S. Farm & Ranch Supply Co.'s media group is selling the Houston full-power independent.
Spanish Broadcasting Buying KTBU For $16M
Spanish Broadcasting System announced today that it entered into an agreement to acquire KTBU Houston market from U.S. Farm & Ranch Supply Co. and certain of its subsidiaries for $16 million. The acquisition is expected to close in the third quarter of 2011, pending FCC approval.
KTBU is a full-power television facility reaching approximately 1.8 million households in Houston, the nation’s fourth-largest Hispanic television market,through its over-the-air, cable and satellite distribution platforms.
Raúl Alarcón, president and CEO of SBS, commented: “Houston is a leading U.S. Hispanic market and this transaction is an ideal expansion of our Mega TV footprint, given the rapidly growing national Hispanic population.”
The company said it intends to fund the acquisition from cash-on-hand and free cash flow generated from operations.
Since SBS launched Mega TV five years ago, the network has expanded its distribution to 5.6 million households via affiliates in 11 cities across the U.S. and Puerto Rico, as well as cable and satellite distribution throughout the U.S. and Puerto Rico. SBS develops original content for the network at production facilities located in Miami and San Juan, P.R., with additional bureaus in New York and Los Angeles.
“Mega TV has always been at the forefront in providing original Hispanic programming to an audience that expects high quality and engaging content. We are proud to expand our commitment to our viewers by bringing Mega TV to Houston on KTBU Channel 55,” commented Albert Rodriguez, chief revenue officer of SBS.