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News > Deals
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NBC seeks Telemundo
graphic October 8, 2001: 6:52 a.m. ET

NBC offers $2B and will assume $700M in debt for No. 2 Spanish-language network.
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  • NBC buys 32% stake in Paxson for $415M - Sep. 16, 1999
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  • General Electric
  • Paxson Communications
  • Viacom
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    NEW YORK (CNNmoney) - General Electric's NBC network is in talks to acquire Spanish language television company Telemundo Communications Group Inc. from Sony Corp. and Liberty Media Corp. for more than $2 billion in cash and GE stock, a published report said Monday.

    NBC's bid, which also includes the assumption of nearly $700 million in debt, is larger than rival Viacom Inc.'s (VIA.B: Research, Estimates) bid. But with no definitive agreement signed, Viacom is still a contender, the Wall Street Journal reported.

    A Telemundo spokesman could not be reached for comment.

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    Though NBC's offer is short of the $3 billion, including assumption of debt, that Telemundo's owners sought, people close to the situation said it was a good price considering the recent slump in media stocks.

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    NBC's acquisition of Telemundo would mean the pairing of the No. 1 English-language broadcast network with the No. 2 Spanish-language service, the Journal said.

    Telemundo sold between $200 million and $250 million in fall television ads, a 15-20 percent increase from last year. The No. 1 Spanish broadcaster, Univision Communications Inc., sold about $550 million in fall season ads, a 10 percent increase from last year.

    Revamped programming has also helped boost Telemundo's ratings in the last few years.

    NBC is not likely to face many regulatory hurdles if it acquires Telemundo and its eight television stations. But the deal could interfere with NBC's ability to buy the rest of Paxson Communications Corp. (PAX: Research, Estimates) under current federal regulations that limit a company from owning stations that reach more than 35 percent of the country, the Journal said.

    NBC currently owns about one-third of Paxson's shares.

    General Electric (GE: Research, Estimates) shares finished 6 cents higher at $37.45 Friday. Viacom shares shed $1.15 at $34.50. graphic

      RELATED STORIES

    NBC buys 32% stake in Paxson for $415M - Sep. 16, 1999

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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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