Spanish Broadcasting System has terminated its agreement to sell its “Mega TV” network to Voz Media for $64 million.
SBS had agreed in February to sell Mega TV and stations WSBS-TV Key West, WSBS-CD Miami, WTCV San Juan, and WVOZ-TV Ponce PR in the deal. The company noted that on August 21 it served Voz with a written notice of material breach of the agreement. “Voz failed to timely respond to the Notice of Breach or otherwise cure the breach. The closing of the transaction was scheduled to take place on September 15, 2023. Voz did not close the transaction, despite the contractual obligation to do so. Accordingly, pursuant to Section 11.1(c) of the Agreements, SBS served Voz with a notice of termination of the Agreements (the “Notice of Termination”). The Notice of Termination is without prejudice to any of SBS’s rights, powers, privileges, remedies, and defenses, now existing or hereafter arising, all of which are hereby expressly reserved.”
SBS states that as a result of this termination, the company is “reevaluating and reinitiating the sale of the television and real estate assets previously outlined in the Agreements. We anticipate that this process will be completed in a timely and efficient manner, with the aim of identifying a suitable buyer who aligns with our objectives.”
The sale of Mega TV and the television stations was to help finance SBS’ $7.5 million acquisition of Gospel “Praise 92.1” KROI Seabrook/Houston from Radio One’s Sugarland Station Trust. That deal included contractual language allowing SBS to delay closing of the purchase until no later than November 15 in order to allow the company to use the proceeds of the television sale to finance the acquisition.
Voz Media intended to use the SBS properties to grow a Spanish language Conservative News network.
