Female-Led Latino Media Network Launches With $60 Million Acquisition Of TelevisaUnivision Radio Stations

Two Latina social entrepreneurs today officially launched the Latino Media Network (LMN), a new media content creation, talent incubation and distribution company, aimed at reaching the Hispanic market, initially focused on audio.

Stephanie Valencia and Jess Morales Rocketto raised $80 million – one of the largest capital raises of a Latina owned and operated startup in the U.S – from a diverse set of investors. They also tapped a series of high-profile entrepreneurs, media and celebrity advisors and board members to support the new venture, including actress Eva Longoria, news personality María Elena Salinas and Christy Haubegger, founder of Latina magazine and current WarnerMedia executive.

“As Latinos drive population growth in the United States, they continue to navigate the ocean of information on what is happening in the world and their place in it. With minority media on the decline, now is the time to be investing in more resources to create content for Latinos by Latinos. Through the unique combination of creative content and new and existing media platforms to serve our community, we can embrace cultural pride and collectively empower Latinos,” said LMN co-founder Stephanie Valencia.

To coincide with its launch, the company also announced it signed a definitive agreement with TelevisaUnivision to purchase 18 radio stations in 8 of the top 10 Latino markets in a $60 million all cash deal. LMN has secured equity investments from leading Latino investors and debt financing for the acquisition from Lakestar Finance LLC, an investment entity affiliated with Soros Fund Management LLC.

The 18 AM and FM stations are WADO-AM (New York), KTNQ-AM (Los Angeles), WRTO-AM (Chicago), KFZO-FM and KFLC-AM (Dallas), KLAT-AM (Houston), WAQI-AM and WQBA-AM (Miami), KXTN-AM (San Antonio), KISF-FM, KLSQ-AM and KRGT-FM (Las Vegas), KGBT-FM, KBTQ-FM and KGBT-AM (McAllen), KLLE-FM, KOND-FM and KRDA-FM (Fresno).

“Our company, and these stations, are for our community,” said LMN co-founder Jess Morales Rocketto. “We believe in the power and reach of radio and it remains a main source of media for a significant number of our community. We hope to create relevant content for radio and other audio platforms with content that our community can trust and rely on.”

Both companies agreed to a one year transition of the stations following FCC approval, with an expected conclusion in Q4 of 2023.

A TelevisaUnivision spokesperson issued a company statement acknowledging the agreement “to divest 18 of its non-core radio stations,” reaffirming that it’s not abandoning the radio business. “As of the closing of the transaction, TelevisaUnivision will still operate the largest Spanish-language radio footprint in the country by audience reach, with 39 stations across 12 top markets, such as New York City, Los Angeles, Chicago, Dallas, and Houston, and a network of 228 affiliate stations across 79 markets. Audio and music will continue to be a strategic priority through investments in core radio assets and Uforia, TelevisaUnivision’s audio brand which includes audio streaming, podcasts and live concert series.”

LMN says it plans to keep current TelevisaUnivision employees who work at the stations it is acquiring and that it is in the process of recruiting top talent for its senior management team, which will be announced later this year.

The new company’s board members, investors and advisors include:

• Maria Elena Salinas: Award-winning journalist and author, former co-anchor of Univision’s evening news for more than 30 years. Principal of MES Mult-Media LLC.
• Eva Longoria: Director, actor, activist and philanthropist. CEO and Founder, UnbeliEVAble Entertainment and Founder, Casa del Sol Tequila.
• Dr. Eduardo Padron: President Emeritus, Miami Dade College; Strategic Corporate Advisor; Board, Urban Institute. Recipient of the Presidential Medal of Freedom.
• Al Cardenas: Board member Coral Gables Trust Co., Investor and Treasurer, American Business Immigration Coalition; former Chair of the Republican Party of Florida and former Chair of the American Conservative Union.
• Maria Contreras Sweet: Co-founder of Pro-America Bank; former US Administrator of the Small Business Administration; former Secretary of Business and Transportation for the State of California.
• Mónica Lozano: Former publisher and CEO of La Opinión and CEO of its parent company, ImpreMedia, LLC. Currently on corporate boards of Walt DisneyDIS
  Corporation, AppleAAPL
  , Inc. and TargetTGT
  Corporation.
• Henry R. Muñoz III: Activist, business leader and philanthropist, who has launched national movements including Momento Latino, TheDream.US and Latino Victory, support the Latino community.
• Luis Ubiñas: Investor and advisor. Former President Ford Foundation, Senior Partner McKinsey and Company. Current corporate director at AT&TT
  , Chairman, Statue of Liberty-Ellis Island Foundation.
• Tom Castro: Founder and CEO El Dorado Capital and radio entrepreneur, investor, and corporate director. Has bought and sold over 50 radio stations serving the Latino community. Former Director of Time Warner.
• Juleyka Lantigua: Founder/CEO, LWC Studios. Peabody-nominated audio creator, former NPR, Atlantic Media, and Random House.
• Tom Chavez: Hi-tech entrepreneur, author and co-founder of super{set}, a startup studio that builds and funds software companies.
• Christy Haubegger: Founder, Latina magazine and current EVP, Chief Enterprise Inclusion Officer and Head of Marketing & Communications at WarnerMedia.
• Alicia Bassuk: Founder of Ubica Leadership Strategies. Partner and investor in several ventures, including Kinzie Capital Partners and Core Innovation Capital.
• Jess Morales Rocketto: Chief of Moonshot Strategies at Equis. Co-Founder of Families Belong Together, Poderistas, and Supermajority. Formerly National Domestic Workers Alliance, Hillary for America, Obama for America.
• Stephanie Valencia: Co-Founder and President at Equis. Co-founder of Poderistas, Latino Talent Initiative, The Latina Collective, and Latinos44. Formerly Google, Obama White House, United States Congress.
• Gibson, Dunn & Crutcher LLP, Sidley Austin LLP, Fletcher Heald, and Herrera Arellano all advised on the deal.