Spanish Broadcasting System & Viacom Complete Strategic Alliance.

Spanish Broadcasting System, Inc. announced that it has completed its previously announced acquisition of KRZZ 93.3 FM serving the San Francisco market from Viacom’s Infinity Broadcasting. Under the terms of the strategic alliance between Viacom and Spanish Broadcasting System, Infinity merged 93.3 FM into SBS in exchange for an approximate 10% equity interest. Infinity also received warrants that will allow it to increase its equity stake in SBS by approximately another 5%. Through the reformatting of 93.3 FM, SBS now owns and operates the single most powerful Spanish-language radio station in the Bay area.

In addition, SBS entered into a cross-promotional agreement with CBS Television and Viacom Outdoor whereby the three business units agreed to work together to more effectively market their respective properties. Infinity Solutions and Beyond, Infinity’s in-house marketing and sales group, will partner with SBS and work towards increasing both companies’ national and regional advertising revenue.

Raul Alarcon, Chairman, President and CEO of SBS, commented, “This strategic alliance creates a unique multimedia partnership focused on targeting the U.S. Hispanic population for years to come. Together with Viacom, one of the world’s largest media companies, we are positioned to capture the future of this dynamic growth market through a comprehensive platform that includes some of the country’s premier radio, television and outdoor properties. I am grateful to the management teams of Infinity and Viacom for this opportunity, and look forward to a successful partnership.”