MIAMI — Spanish Broadcasting System (SBS) has agreed to sell the five broadcast television stations airing its Mega TV Spanish-language network — as well as its headquarters building — to a Lone Star State entrepreneur that will rebrand the TV operation and refocus its programming on conservative political commentary and news en español.
COMING TUESDAY: A RBR+TVBR InFOCUS Podcast with the buyer of Mega TV!
On July 12, 2005, a Delaware corporation named Mega Media Holdings Inc. agreed to acquire a television station licensed to Key West, Fla., along with a Class A repeater serving Greater Miami, from a pair of licensees controlled by Dr. William de La Peña.
Mega Media, in reality, is an entity within SBS and that deal, valued at $37 million, turned heads across the media industry and on Wall Street. Why was SBS, a successful radio broadcasting company, entering the TV business? Banc of America Securities analyst Jonathan Jacoby expressed “uncertainty surrounding its TV venture” in a January 2006 investor report.
The answer: to create MegaTV, which despite the naysayers has become a nationally distributed “netlet” target Spanish-language consumers with a mix of programs ranging from political commentators Pedro Sevcec, Oscar Haza and Jaime Bayly to the now-concluded Canale 5 Italian telenovela Pasión Toscana, dubbed into Spanish. The performance of MegaTV has even been recognized by industry leaders, with honors going to SBS President/COO Albert Rodriguez as a past Broadcast Television’s Best Leaders honoree.
Now, some 17 years after MegaTV debuted, SBS has decided to sell the Miami stations — and three in Puerto Rico airing a localized version of the network — for $64 million.
The deal includes real estate, with SBS agreeing to a lease-back arrangement for its Pablo Raúl Alarcón Media Center off of the Palmetto Expressway in Miami. And, SBS is earning proceeds from the sale of the building, in addition to WSBS-22 in Key West (using digital channel 3); WSBS-CD 19 in Miami; and MegaTV’s Puerto Rico trio of WTCV-18 in San Juan, WVEO-18 (digital channel 17) in Aguadilla, and WVOZ-18 (digital channel 36) in Ponce.
It is believed that the deal includes the distribution agreement for the nationally distributed MegaTV channel found on DirecTV Channel 405.
Who’s the buyer? Introducing Orlando Salazar, a Texas-based entrepreneur behind the recently launched VOZ Media. His goal? To perhaps become the Newsmax, or FOX News, for those who prefer to consume their media en español.
While VOZ Media will use the current MegaTV studios and offices, RBR+TVBR has learned that studio space in Las Colinas, Tex., is also in the mix for VOZ Media.
VOZ Media in December held an event at video production company CRM Studios, based in that Dallas suburb, to help gain exposure for VOZ Media, which was a sponsor of CPAC Texas 2022.
Already on board as a presenter and Executive Producer is Karina Yapor, known for her work on-air at Telemundo O&O KTDO-48 in El Paso, and for Univision in Dallas and Houston. She joined VOZ Media in June 2022.
As VOZ Media sees it, the goal is provide “balance” in the Spanish-language television segment of U.S. media, offering counterpoint to such well-known commentators as Jorge Ramos of Univision News.
On its LinkedIn company page, a message in Spanish from VOZ Media, translated into English, reads:
The moment has arrived to raise our voice, with a medium that shares our true values, that speaks with truthfulness and defends liberty, family, the right to life and the search for happiness. Now we have a channel that represents us because we believe in the things that Latinos from different nations find important, and have driven us to become better and to enjoy the American dream.
VOZ Media is using the tagline “Hablamos como tú,” or “We speak like you.”
In Spanish, VOZ Media continues, “In all of these years we haven’t had a news option, to truthful information, with the point of view that represents our values. Now we have that option — a news organization that represents the values that we have brought to all of Latin America.”
Salazar commented on the acquisition by stating, “It is an honor for Voz Media to be selected to continue the work and tradition started by Raúl Alarcón Jr. and Mega TV in the Spanish language television media market. We take seriously the challenge of moving Mega TV forward in both reach and content, as we continue to serve Spanish speakers across the United States.”
The acquisition of MegaTV by VOZ Media comes after a major expansion of conservative-leaning Spanish-language Talk radio in Miami-Fort Lauderdale, fueled in part by Latino Media Network’s purchase of Univision Radio properties such as WAQI “Radio Mambí” — a longtime voice of the Cuban exile community. Today, Spanish-language conservative talker Americano Media is leasing Audacy Corp.’s WAXY-AM, shifting from Sirius XM Satellite Radio; “América Radio 1260 AM,” formerly “Caracol,” offers conservative talk programming en español tied to its América tevé television operation; and Salem Media Group, which has swiftly become a formidable Spanish-language talk radio operator in Miami thanks to its recent acquisitions of WMYM-AM 990 and FM translator W254DT at 98.7 MHz in Miami; WWFE-AM 670 “La Poderosa” and FM translator W276DV at 103.1 MHz; and WRHC-AM 1550 and its FM translator W254DV at 98.7 MHz. The current ratings leader in the Spanish-language spoken word sphere in South Florida is WURN “Actualidad 1040/103.9,” which is the home of Fútbol de Primera Radio and received a listener surge during the 2022 FIFA World Cup. Its programming is considered to be centered with respect to its political leanings.
The sale of MegaTV also comes as SBS prepares to release its fourth quarter and full-year 2022 financial results. In Q3 2022, Television net revenue increased year-over-year to $3.22 million from $3.02 million. However, for the nine months ended November 30, 2022, Television revenue declined to $8.06 million from $9.03 million — an indication MegaTV did not receive a political ad-dollar bump in a record-setting spending year.
Then, there are the expenses of running a television operation, which through the first nine months of 2022 put SBS’s Television segment at an operating loss of nearly $4 million, equal to that of the first nine months of 2021.
With the voluntary rollout of ATSC 3.0 already involving other Miami-based TV broadcasters, and the cost associated with shifting to a NEXTGEN TV environment, further expenses loom on the horizon. With the FCC’s blessing, that will be VOZ Media’s task to complete upon closing.
Commenting on the divestment of Mega TV, Alarcón said, “I am very proud of the nearly two decades of award-winning programming, community dedication and industry accomplishments achieved by Mega TV, a network operation that succeeded in forging its own unique position among Hispanic viewers in the U.S. and Puerto Rico. I am especially pleased to leave this unique asset in the hands of a dedicated Hispanic owner, Orlando Salazar, who will continue the expansion of Mega TV and honor its unwavering commitment to faithfully serve our nation’s burgeoning Latino population.”
Albert Rodriguez added, “We couldn’t be more proud of the fact that the legacy of Mega TV will continue under the leadership of another Hispanic-owned media company. Orlando and the Voz Media team have our unqualified support and we look forward to working with them throughout this transition and beyond.”
