Hicks Muse To Target Latin American Media

In January, Hicks, Muse, Tate & Furst finalised an agreement with Cisneros Group of Companies, a Venezuelan international media and telecommunications group, to form a $500 million (ecu 460 million) buyout fund focusing primarily on Latin America.

Ibero-American Media Partners, to be based in Miami, will acquire and develop strategic alliances with media concerns in Latin America, Spain and Portugal, focusing on TV and radio broadcasting companies and Spanish and Portuguese-language production and programming facilities.

“Just as the US has ABC, NBC and CBS, we want to have a Spanish network for Latin America and the Iberian peninsula,” explained Allan Menkes, a Hicks Muse managing director.

Hicks Muse and the Cisneros Group will each commit $250 million to the partnership. Hicks Muse’s share will come from Hicks, Muse, Tate & Furst Latin America Partners, scheduled to hold a first close on at least $500 million by the end of January.

Hicks Muse brings experience in both domestic broadcasting and investment in Latin America to the partnership, while Cisneros can contribute its management experience and contacts in Latin America and the Iberian peninsula.

The formation of Ibero-American Media Partners represents a further step in the establishment of a Hicks Muse media empire.

Chancellor Media and Capstar Broadcasting Partners, funds targeting radio station buyouts in, respectively, the medium-to-large and small-to-mid-size media markets, were formed in 1995. The following year, Hicks Muse launched a television broadcasting platform and, most recently, has teamed up with Kohlberg Kravis Roberts for the $1.5 billion joint purchase of Regal Cinemas and the merger of the two groups’ existing cinema portfolios.