Latina activists and entrepreneurs Jess Morales Rocketto and Stephanie Valencia have raised $80 million to launch a new Spanish media company, the Latino Media Network.

Why it matters: It’s one of the largest capital raises for a Latina-owned and operated startup in the US

• “It’s quite daring for people like us to do something so big,” Morales Rocketto said in an interview. “Steph and I have been raising money for a long time, but this is an order of magnitude greater than anything we’ve ever done.”

Send the news: With the capital, the duo has acquired 18 Spanish radio stations in 10 markets from TelevisaUnivision.

• The deal, valued at $60 million, is one of the largest single acquisitions of radio stations by a Latino company owned and operated.
• “Those 10 markets are some of the most densely populated markets in the country,” Valencia said, referring to markets such as Los Angeles, New York, Miami, Houston, Chicago, Dallas, San Antonio, McAllen, Fresno and Las Vegas. “They basically give us access to a third of the Spanish population in this country.”
• Most of the acquired stations are mainly Spanish-speaking and a few are bilingual. Some of the AM stations are talk radio while others are sports broadcasts from major professional sports teams. Most FM stations are focused on music for now.
• “This decision follows a formal process in which TelevisaUnivision met dozens of potential buyers,” TelevisaUnivision said in a statement.

The startup has recruited dozens of high-profile Spanish celebrities, entrepreneurs, media figures and investors to join the cause.

• The board will include Morales Rocketto and Valencia, as well as radio entrepreneur and investor Tom Castro and social justice activist Henry R. Muñoz III. Castro has bought and sold more than 50 radio stations serving the Latino community and serves on the boards of Nielsen and Cumulus Media.
• Lakestar Finance, an investment entity affiliated with the Soros Fund Management, leads the investment, and other individuals, including Hollywood actress and entrepreneur Eva Longoria, also invest.
• Award-winning Univision anchor Maria Elena Salinas and Al Cardenas, former president of the Florida Republican Party and the American Conservative Union, will serve as advisors.

Quick update: Valencia was formerly a special assistant to former President Obama and the White House’s chief deputy director of public engagement.

• Morales Rocketto has worked for several nonprofit organizations and is an alumna of Hillary for America, the AFL-CIO, Obama for America and the Democratic National Committee.
• Asked if the company has a political leaning, Morales Rocketto said, “It’s not about politics. We’re serious about serving the community, and about freedom of speech and free speech.”
• “Of course Stephanie and I are who we are, we are and we don’t want to hide that, but this is not political.”

Between the lines: Latino Media Network said it will focus on creating and distributing media content across all media, with a specific focus on audio for starters.

• The company plans to move beyond radio to podcasts and content on YouTube and other digital platforms. It requires a bilingual approach, producing and distributing content in Spanish and English across various platforms, such as audio streaming and social media, as well as its own channels.
• “We are interested in expanding the digital footprint across all of these stations,” said Morales Rocketto. “YouTube is a major entry point for Latinos,” she noted.

By the numbers: Radio has the highest weekly reach among Hispanic adults in the US at 96%, compared to 92% of the total population, according to Nielsen. During the pandemic, radioactivity among Hispanics increased dramatically.

• According to Edison Research, podcast listening time among U.S. Hispanics increased by 44% in 2021. More than a third of American Latino adults listen to podcasts on a monthly basis.

How it works: From a business perspective, the company says it will monetize advertising the radio content and in the future by syndicating content to other stations.

• While the radio advertising market has recovered from COVID, Valencia said there will be more business opportunities for the company as it expands digitally into multi-platform audio through YouTube podcasting and other places.
• From a content perspective, Latino Media Network said it will build programming around authoritative news personalities and subject matter experts to help the Latino community navigate complicated topics, such as healthcare, finance and small business. While much of that content will be supported by advertising, some programs may be funded through philanthropy, Valencia said.

The big picture: The increase of the Latino Media Network and the deal with TelevisaUnivision represent the latest major momentum for the Spanish media.

• Two weeks ago, Candle Media, the Blackstone-backed media holding company headed by Disney veterans Kevin Mayer and Tom Staggs, acquired Exile Content Studio, one of the fastest-growing Latin American content companies in the world.
• Last month, a startup backed by private equity bought some of the most influential Hispanic newspapers in the US
• Latinos are driving population growth in the US, but the community has long been treated as a monolith. Latino Media Network said it will focus on creating content that addresses the different cultural and political nuances that affect different types of Latinos.

Briefly: “So many times our stories are blotted out or invisible. In some ways, you wouldn’t know that Latinos are going to be the most important part of the American population in our lifetime,” Valencia said. “It’s incredibly important that we can bring a sense of belonging, influence and power to this community.”

What’s next: The company is hiring an executive team, including a CEO, to begin recruiting talent and managing the assets owned by TelevisaUnivision.

• The transaction is expected to close by the end of 2022, subject to regulatory approval in the US.

Editor’s Note: This story has been updated to include additional comments from Morales Rocketto about the company’s politics.