CORAL GABLES, FLA. — In June, a newly formed Santa Fe, N. Mex.-headquartered media company super-serving U.S. Hispanic consumers agreed to acquire 18 AM and FM radio stations from TelevisaUnivision.
The $60 million deal triggered a spirited protest movement in Miami, as the buyer secured debt financing for the acquisition from an investment entity affiliated with Soros Fund Management LLC. Given George Soros’ political leanings, conservatives were furious that changes to longtime anti-Castro Spanish-language Talker “Radio Mambí” were inevitable. As such, efforts to thwart regulatory approval of the transaction were engaged.
The FCC has now spoken. The applications for the transfer of control to Latino Media Network have been approved.
To say the LMN deal was controversial may be misleading. According to the rules, the transfer of control of a radio or television station may not take programming decisions into account.
Don’t tell that to Lourdes Ubieta, who in July quit TelevisaUnivision’s spoken word flagship WAQI-AM 710 “Radio Mambí” in Miami and is now with Americano Media — heard on Audacy Corp.’s WAXY-AM 790 under the “Radio Libre” brand.
Former “Radio Mambí” hosts Nelson Rubio and Dania Alexandrino also joined Americano Media, which had been heard on Sirius XM until the WAXY launch.
As all of that unfolded, Coral Gables-based internal medicine specialist Dr. Pedro Roig became so distraught over the pending sale of “Radio Mambí,” of which he is an avid listener, that he moved forward with filing a Petition to Deny on August 11.
Why? Roig asserts that the asset purchase agreement governing this transaction states that the parties will execute at closing one or more local marketing agreements (LMA), which he states is “non-standard” compared to pre-closing LMAs.
Dr. Roig also raises a concern that the APA requires that the parties negotiate one or more local programming license agreements, pursuant to which Univision and its affiliates will provide certain programming and content to LMN after LMN acquires the stations.
In his view, Roig argues those aspects of the transaction do not comport with the
Commission’s Reversionary Interest Rule; that certain contracts and station assets would not be conveyed to LMN; and the granting to Soros-affiliated Lakeside Finance LLC an equity stake of up to 49% at closing was concerning.
As such, Roig wanted the applications filed with the FCC to be amended to the extent that they include the LMA and Programming Agreement exhibits, the schedules of included and excluded assets, and the warrant in order for the Commission to assess whether grant of the applications would serve the public interest.
The applicants involved in the transaction responded by stating that the Reversionary Interest Rule “is inapplicable here” because Univision will not “retain any right of reversion, or any future right regarding the stations whatsoever.”
Regarding the LMAs, they would be in place for no longer than one year.
What did Audio Division Chief Al Shudiner have to say about Roig’s argument? A petition to deny must “contain specific allegations of fact sufficient to show that the petitioner is a party in interest and that a grant of the application would be prima facie inconsistent
with [the public interest]. The allegations of fact, except for those of which official notice may be taken, must be supported by an affidavit or declaration under penalty of perjury of someone with personal knowledge of the facts alleged.
“Here, Dr. Roig has not provided an affidavit to support the allegations raised in his pleading, and he failed to properly serve the pleading on the Applicants as required by section 309(d)(1) of the Act and section 1.47 of the Commission’s rules,” Shuldiner declared.
As such, Roig’s petition is procedurally defective. Shuldiner also dismissed the LMA claims, noting the applicants amended the applications on October 27 to include a joint certification that Univision has waived the closing condition that required LMN to enter into an LMA.
Thus, the Audio Division of the Media Bureau has granted the TelevisaUnivision applications, putting a closing on track for LMN, co-led by Jess Morales Rocketto and Stephanie Valencia.
In conversations with RBR+TVBR, Valencia has stressed that no programming changes are in the works for “Radio Mambí,” even noting that doing so would be foolish given its history of success in Miami. Nevertheless, LMN will face Americano Media in addition to “Caracol 1260” and “Actualidad Radio” as Spanish-language spoken word competitors in a highly charged atmosphere.
LMN is ready for the challenge.
Stephanie Valencia is gaining widespread attention for her role as the co-founder of the newly formed Latino Media Network (LMN). It’s first act: The purchase of 18 radio stations from TelevisaUnivision — including all of its AMs and FMs in Las Vegas, Fresno and the Rio Grande Valley. What’s LMN’s plan of action? RBR+TVBR Editor-in-Chief got the exclusive scoop from Valencia 
