Univision, Regulators in Deal on Approval for Acquisition

Antitrust regulators told Spanish-language media giant Univision Communications Inc. they will approve its $2-billion purchase of radio broadcaster Hispanic Broadcasting Corp., as expected, if it reduces its stake in another Spanish-language firm.

Univision said that to obtain Justice Department approval, it agreed to cut its 27% stake in Entravision Communications Corp. to less than 10% in six years. Univision also said it would convert its shares to a new class of nonvoting preferred stock. The deal would still allow Univision to weigh in on any sale or merger involving Entravision.

Critics of the deal had said Los Angeles-based Univision’s stake in Entravision, coupled with the purchase of Hispanic Broadcasting, would give it too much control of Spanish-language media. Entravision, based in Santa Monica, is the biggest owner of Univision TV affiliates and owns about 55 radio stations, many of which compete with Hispanic’s outlets. Hispanic Broadcasting is headquartered in Dallas.

The arrangement with the Justice Department essentially clears the way for the deal to close. Univision said it still requires Federal Communications Commission approval, which is expected to come next week.

If the merger is approved, Univision would have a lock on about two-thirds of all Spanish-language advertising dollars in the U.S.

The deal also would create an unusual conglomerate that owns both a dominant Latin music label and the nation’s biggest Spanish radio chain -- a prospect that has worried rivals.

Separately, Univision said it agreed to buy Paxson Communications Corp.’s KAPX-TV in Albuquerque, N.M., for $20 million in cash.