Univision in $3.5B radio-station buy

Univision Communications Inc., the top U.S. Spanish-language TV broadcaster
made a big move into radio today, agreeing to buy the number one ranked
Spanish-language radio group owner Hispanic Broadcasting Corp. in a deal valued
at $3.5 billion.

The parties played up the cross-platform benefits of the deal, noting that
Univision will now be able to offer advertisers spots on broadcast TV, cable,
radio and the Internet.

Adding radio to the mix also boosts cross-promotion opportunities they

The move comes six months after Univision launched its second U.S. TV
network, Telefutura.

Last year Univision paid $1.1 billion to buy the USA Broadcasting TV
stations, which its used as the distribution backbone for Telefutura.

The proposed tax-free stock transaction gives Univision shareholders about
73.5% of Hispanic Broadcasting's fully-diluted economic ownership.

If approved by regulatory agencies (the parties expect the deal to be
completed by the end of the year)

Hispanic will become a separate subsidiary of Univision, which would continue
to be overseen by MacHenry T. Tichenor Jr. and would remain based in Dallas.

Tichenor will join the Univision board of directors.

Clear Channel Communications, a major investor in Hispanic Broadcasting
(roughly 26%) has agreed to vote in favor of the merger (as have the respective
boards of Univision and Hispanic) and will take an ownership stake in Univision
of approximately 7%.

Hispanic had about $241 million in revenues last year.

Univision said the combined companies would have pro forma 2002 revenue of
between $1.39 billion and $1.44 billion and operating cash flow of between $433
and $469 million.