UNIVISION LAUNCHES LABEL BROADCAST BUYS INTO INDEPENDENT MUSIC COMPANY.

Byline: Jesse Hiestand Staff Writer

Univision Communications Inc., the nation's leading Spanish-language broadcaster, is getting into the music business by launching a label and buying into one of Mexico's largest independent labels, the chief executive said Wednesday.

A. Jerrold Perenchio, chairman and chief executive of the Los Angeles- based media company, said music from Univision Music Group and Disa Records S.A. will be exclusively distributed by Universal Music Group, a unit of Vivendi Universal S.A.

``Univision's entry into Spanish-language music is a natural extension of our business and clearly positions the company as a broad-based, multifaceted entertainment company,'' he said.

Univision Music Group will be led by Jose Behar, who built the Latin music division for British label EMI Group and discovered or developed artists including Selena, Jon Secada and Oscar De La Hoya.

``Jose has been credited as one of the pioneers in the Latin music crossover movement,'' Perenchio said.

He said Univision bought a 50 percent interest in Disa Records, the world's second largest independent Spanish-language record label whose artists include Los Angeles Azules, from the Chavez family. The Chavez family will continue to manage the business, based in Monterrey, Mexico.

Terms of the deal were not announced.

``We are proud to be partnering with Univision, whose reputation among the Hispanic community is second to none, and look forward to working together to meet the world's increasing demand for Spanish-language music,'' said Disa's chief executive, Patricia Chavez.

As a broadcaster, Univision Television Group has 19 stations in the United States and is buying an additional 13 from USA Networks Inc. It also has more than 1,000 cable and broadcast affiliates.

On Wednesday, shares in Univision gained $3.78, or 9.67 percent, to close at $42.86.

Vivendi Universal's stock added $1.99, or 3.14 percent, to close at $65.34.