Telemundo finds Gems
Net hopes buy proves precious against rival
Telemundo Network Group prexy and CEO James McNamara told Daily Variety that a contract had been signed but the deal has not yet closed. He declined to reveal the purchase price.
McNamara said Telemundo will use the channel to boost its competitive position vis-a-vis rival Hispanic net Univision, which owns and operates leading U.S. Spanish-lingo cable channel Galavision.
“I believe Gems has about 60% of Galavision’s (reach) and I think we can get to 80% quickly. To get parity will be tough,” he acknowledged. The situation mirrors that of the broadcast biz, he says, where Univision’s larger network of stations reaches a greater percentage of U.S. Hispanic homes.
Univision was close to buying Gems last year, but a deal fell through. Since then, Gems had held talks with a number of potential suitors.
Jointly owned by Cox Communications and Empresas 1BC, the holding company that also owns Venezuelan broadcaster RCTV, Gems reaches over 13 million homes in the U.S. and Latin America. In the latter, the web has been squeezed by MSO consolidation and capacity constraints. Telemundo is believed to have negotiated a price well below the $40 million reportedly offered by Univision last fall.
McNamara does not plan an extensive overhaul of the channel’s programming. And although Telemundo’s primary focus for Gems is on the U.S. Hispanic market, he intends to maintain the Latam signal.
