HC2 Holdings broadcasting subsidiary acquires Azteca America
HC2 Holdings announced that its subsidiary, HC2 Network , has acquired Azteca America, a Spanish-language broadcast network, from affiliates of TV Azteca, S.A.B. de C.V, one of the two largest producers of Spanish-language television programming in the world. In addition, HC2 Network has signed a definitive acquisition agreement with Northstar Media, a licensee of numerous broadcast television licenses in the United States. Under the agreement with Azteca, which closed today, HC2 Network acquired Azteca America, a Spanish-language broadcast network providing original content to the Hispanic audience in the United States. Under the agreement with Northstar, HC2 Network will acquire Northstar's broadcast television stations, which carry Azteca America programming. The Azteca transaction extends to the acquisition of professional staff across the U.S. involved in programming, marketing, advertising sales, finance and operations. The Northstar transaction, which is subject to approval by the Federal Communications Commission, as well as other customary closing conditions, would result in HC2 Network acquiring 19 television stations, including two full-power stations, eight Class A stations and eight low power television stations, along with a channel share agreement for the full-power license of KEMO-TV in San Francisco. In combination with HC2's previously announced acquisitions of a controlling equity interest in DTV America Corporation, which currently carries Azteca video programming in 10 markets, and of the broadcasting assets of Mako Communications, LLC and its affiliates, Three Angels Broadcasting Network, Inc., and other station licensees, the acquisition of the 19 Northstar television stations would expand HC2's broadcasting network to 113 operating stations, including three full-power stations (inclusive of the channel-share agreement for KEMO-TV in San Francisco), 27 Class A stations and 83 LPTV stations, in over 80 markets across the United States. In addition, the acquisitions increase HC2's construction permits to 475, allowing for further buildout of coverage across the United States. The Azteca transaction also includes multi-year programming and services agreement that provides HC2 with access to TV Azteca's current programming and library in Mexico, including top entertainment shows, talk shows, reality programs, network and local news, as well as telenovelas and other scripted series. Financial terms of the transactions were not disclosed.