Hispanic media continues to grow by leaps and bounds in the US, but not everyone is making money. Latin Television Inc., a penny stock company based in Coral Springs, FL, is throwing in the towel. The company says it will sell off all of its broadcasting assets and instead focus on "the growing market for sports publications." Blaming the costs of converting from analog to digital and the "capital intensive changes" to produce programming in HD, Latin TV says its shareholders have approved a plan to sell off its broadcast equipment and intellectual property and refocus on sports publications. The company said it has already been in talks with the management of some operating sports publications.
"The company has not been able to raise enough capital under our current corporate structure to effectively grow Latin Television to its maximum potential. However, we still strongly believe in Latin Television. The Hispanic market continues to be one of the fastest growing segments of the economy, and Latin Television would be ideally suited to capitalize on the Latin market once it acquires the necessary capitalization," said President Randall Appel. As you would expect, the company also anticipates a name change.
Back when Latin Television made its Wall Street debut last year (2/13/07 TVBR #30), it claimed cable carriage covering 12.5 million households and set its sights on becoming the #3 player in Hispanic TV, behind Univision and Telemundo. At that time, its stock was trading around 2.25. It recently has been around 65 cents.