NBC Bids for Telemundo

08 October 2001

General Electric-owned network NBC is reportedly in talks to purchase Telemundo Communications, America’s second largest Spanish-language TV broadcaster behind Univision Communications, for over $2 billion in cash and GE shares plus the assumption of $700 million in debt.

Although lower than the $3bn including debt sought by Telemundo’s owners (Sony and Liberty Media), NBC’s offer is higher than a rival bid from Viacom and is considered by many to be a good price, given the current weakness of media stocks. However, nothing has been signed and Viacom could still make a higher offer.

Unlike most media companies, Spanish-language TV firms have registered increases in ad revenue this year. During the upfront market, Telemundo sold $200m–$250m of ads, 15%–20% more than in 2000.

News source: Wall Street Journal