Howard Kalmenson’s Lotus Communications has been a 50/50 partner in its national rep since it launched the firm in 2001 with Entravision Communications. But no more. Entravision now owns 100% of Lotus Entravision Reps (LER).
The national rep for Spanish-language radio stations today sells national spot for 156 stations, including not only the Entravision and Lotus groups, but a number of independently owned Spanish stations. LER said its station lineup reaches approximately 68% of the U.S. Hispanic market. It has offices in Los Angeles, New York, Dallas, Miami and Chicago
Terms of the acquisition by publicly traded Entravision of the 50% previously held by privately owned Lotus were not immediately disclosed. As a result of the transaction, Entravision said LER will become a consolidated and wholly-owned subsidiary of Entravision. There will be no change in the business operations of LER, which will continue to be led by President Phillip Woodie.
“We are extremely pleased to have reached an agreement to acquire complete ownership of LER,” said a statement from Entravision CEO Walter Ulloa. “LER has a strong market position and deep relationships with many of the nation’s leading advertisers and agencies. LER has a proven track record and attractive growth profile given the rapidly expanding US Hispanic population and the continued recovery in the advertising market.”
RBR-TVBR observation: Lotus was a pioneer in national sales of Spanish radio, with Lotus Hispanic Reps selling national spot for decades before the joint venture with Entravision in 2001. National accounted for about 25% of Entravision’s radio revenues in 2009, the most recent full year reported to the SEC. Having full ownership of the rep will simplify accounting for the publicly traded company.