Chancellor to Buy Stake in Z Spanish Media

Chancellor Media Corp., the second-largest U.S. radio broadcaster, said it will buy a 20% stake in Z Spanish Media Corp. of Sacramento for $25 million as part of a plan to invest in broadcast properties owned by various ethnic groups. Irving, Texas-based Chancellor will also join with Capstar Broadcasting Corp., Lin Television Corp. and TSG Capital Group in an alliance to pursue other such investments in TV and radio. Capstar, Chancellor and Lin are all backed by investment firm Hicks Muse Tate & Furst Inc. of Dallas. TSG Capital, a private equity investment firm, is the majority owner of Z Spanish Media, which owns and operates 22 Latino-format radio stations in California, Texas and other states.