SBS Files Lawsuit Against Voz Media Over Mega TV Deal

RADIO ONLINE | Monday, October 16, 2023 | 3:43pm CT

Spanish Broadcasting System (SBS)

Spanish Broadcasting System (SBS) has initiated legal action against Voz Media for failing to meet payment obligations in the acquisition of Mega TV announced last February. The lawsuit, filed in Miami-Dade County Circuit Court, alleges that Voz breached the agreement by not closing the $64 million transaction for Mega TV promptly.

SBS sent a letter to Voz on August 21, declaring a material breach due to the failure to timely close the deal. After Voz didn't remedy the breach, SBS terminated the agreement on September 20. SBS says that individuals involved in Voz, including Orlando Salazar and others, conspired to defraud SBS in connection with the failed transaction.

The complaint details the accusation that Voz attempted to leverage Mega TV's weakened condition to reduce the purchase price from $64 million to $38 million. SBS seeks monetary damages, attorneys' fees, and costs. The lawsuit highlights that the defendants' actions have damaged SBS's reputation developed over 40 years as a Hispanic-owned broadcaster.

The proposed $64 million deal included real estate, TV stations and a distribution agreement for MegaTV. The legal dispute raises questions about potential financial restatements for Mega TV's Q1 and Q2 2023 financials. SBS, represented by a Pryor Cashman legal team, aims to resolve the unfulfilled deal through the legal process.