• by David Goetzl  @dgoetzl, June 29, 2006

The $13.7 billion acquisition of Univision this week has Telemundo-operator NBC Universal feeling bullish about the value of its number-two Spanish-language broadcaster.

NBCU Chairman-CEO Bob Wright said in an interview Wednesday that the pricey acquisition of Univision, the leading Spanish-language broadcaster, is "a real validation of the space that we're in."

NBCU bought Telemundo for $2 billion in 2001, a move that was green-lit by the then-new top executive at NBC parent General Electric. "It was in October 2001, just after the infamous 9/11, and (Jeff Immelt) had not been chairman for hardly a month and he supported our interest in acquiring Telemundo," Wright said. "It was a $2 billion equity investment and at the time, it seemed like a ton of money to go into that space."

Univision is the leading Spanish-language broadcaster in ratings and revenues, generating $1.5 billion in ad revenue last year--more than double Telemundo's $746 million, according to Nielsen Monitor-Plus.

But Telemundo is expected to post a 25 percent increase in upfront sales this year, compared to a 10 percent rise at Univision, according to Merrill Lynch analyst Jessica Reif Cohen. Cohen projects that Telemundo will capture $330 million, with Univision pulling in $1.1 billion in commitments.