Telemundo in Talks to Acquire KWHY-TV

Telemundo Network is in talks to acquire Los Angeles-based KWHY-TV, the nation’s largest independent Spanish-language channel. The transaction, which would exceed $200 million, according to sources close to the deal, signals increasingly vigorous competition for Spanish-language viewers nationwide. The Miami-based Telemundo would be the first entity to own two Spanish-language stations in a single market. The deal would position Sony-owned Telemundo, which owns KVEA-TV Channel 52 in Los Angeles, to better compete against market leader Univision in the larger network’s corporate backyard. Telemundo lags significantly in ratings behind Univision--whose parent company, Univision Communications Inc., is headquartered in Los Angeles--but has pulled out of a historical slump in the last year on the strength of a return to popular soap operas. The network also recently announced an extensive deal with a popular Mexican programmer for new content. The push to purchase KWHY Channel 22 signals the first and most significant move in Telemundo’s ongoing strategy to acquire independent stations nationwide, sources said. Telemundo is taking advantage of new federal rules allowing one company to own two TV stations in certain markets. Telemundo approached the station--owned by Harriscope of Los Angeles Inc.--more than a month ago. A letter of intent has been signed, and sources close to the deal say it probably will be final in several weeks, then submitted for Federal Communications Commission review. KWHY general manager Martin Dugan declined to comment on the potential acquisition, referring calls to Harriscope President Buzz Harris, who also declined to comment.