NBC-TELEMUNDO MERGER CHALLENGED:
The National Latino Media Council has filed a petition with the Federal Communications Commission to deny approval of the pending NBC purchase of Telemundo, the nation's second largest Spanish-language network.
The council is a coalition of Latino civil rights and media organizations including the National Council of La Raza, the National Hispanic Media Coalition and the Puerto Rican League Defense and Education Fund, among others.
Former Congressman Esteban Torres, chair of the council, stated the coalition opposes the merger because it does not serve the public interest. It cited in its petition the "detrimental effects" that media consolidation has had on diversity, program content and minority ownership.
The coalition also argues that NBC's parent company, General Electric, has had a poor relationship with the Latino community. The group cited a study by the Hispanic Association on Corporate Responsibility that found no Latinos in the company's executive ranks.
The coalition is asking the FCC to weigh the lack of information NBC and Telemundo provided on their future plans to ensure diversity in such areas as employment and programming.
Paxson Communication Corporation also opposes NBC's acquisition of Telemundo, citing breach of contract. It is asking the FCC to block the acquisition or force NBC to drop its relationship with the network.
NBC bought 32% of Paxson in 1999 for $415 million with an option to buy a controlling stake within 10 years. NBC would not be able to take controlling interest in Paxson if the network acquires Telemundo because it would violate Federal Communications Commission regulations.
NBC agreed to buy Telemundo in October for $2 million in cash and assume its $700 million debt.
