The median price of an existing home in Los Angeles increased 17 percent to $567,480 in April compared to a year ago, but the number of homes sold decreased nearly 13 percent, the California Association of Realtors said on May 25.
The California median rose more than 10 percent to $562,380, with sales down 21 percent, said the industry group, which collects data from more than 90 local Realtor associations around the state. Closed escrow sales of existing, single-family detached homes statewide totaled 516,960 in April at a seasonally adjusted annualized rate.
“Concerns about the likelihood of future interest rate increases continue to influence the market,” said C.A.R. President Vince Malta in a statement. “While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for fixed-rate mortgages, and August 2001 for adjustable-rate mortgages.”
Azteca America Moves U.S. Headquarters to L.A.
Spanish-language television network Azteca America, the U. S. arm of TV Azteca, S.A. de C.V., is moving its U.S. executive and production headquarters to Los Angeles later this year, a spokesman said May 25.
Presently based in Mexico City, the network plans to establish Los Angeles as its base, renting offices for about 10 executives and support staff. A location has not been selected.
Azteca America has a presence in 45 Hispanic markets, including Los Angeles, New York, Miami and San Diego.
The network, the perennial number three behind dominant Univision and NBC-owned Telemundo, has been producing all of its news shows in Los Angeles since February at the Glendale studio it operates. The network is planning to locally produce a morning news and entertainment show for the U.S. market similar to its popular Ventaneando program, which airs in Mexico.
TV Azteca is the second-largest producer of Spanish language television programming in the world, turning out more than 10,000 hours a year, and operates two national television networks in Mexico. TV Azteca affiliates also include Todito.com, an Internet portal for North American Spanish speakers.
Zenith Files Workers Comp Reduction
Woodland Hills-based Zenith National Insurance Corp. said May 25 that its subsidiary, Zenith Insurance Co., has filed with the California Department of Insurance to adjust its California workers’ compensation insurance rates for policies starting or renewing on or after July 1.
The new rates represent an average reduction of 5 percent when compared to rates in effect since Jan. 1. “Continued deflationary cost trends make rate reductions appropriate,” Chairman Stanley Zax said in a statement.
Hilton Shareholders Reject ‘Pills’
Beverly Hills-based Hilton Hotels Corp. said that 68 percent of votes at the company’s annual shareholders meeting on May 24 approved a proposal calling on the board of directors to overturn a so-called “poison pill” plan that makes it more difficult for an entity to acquire large blocks of stock.
The proposal calls for the hotel chain’s by-laws to be amended to prohibit any stockholder rights plan, generally used to reduce the potential for unfriendly takeovers, unless the plan was first approved by a majority of shareholders. Hilton said its board, which had urged shareholders to reject the measure, will meet to consider appropriate action.
A second shareholder proposal calling on the board to make the election of directors a majority rather than plurality vote was defeated, receiving only 48 percent of votes cast.
Studios, Networks Sue Cablevision
Four Hollywood studios and three major broadcast networks said on May 25 that they have filed a suit against Cablevision Systems Corp. to bar the cable provider from offering a new video-on-demand service, alleging copyright violations.
New York-based Cablevision, the nation’s sixth largest cable provider, was set to launch an on-demand service next month that uses a “network DVR” to allow users to compile content off of a central system DVR, instead of the typical set-up that stores programs on individual set-top boxes.
Stating that the service violated their copyrights, News Corp.’s 20th Century Fox, Viacom Inc.’s Paramount Pictures, NBC Universal’s Universal Studios, Walt Disney Co. and networks NBC, CBS and ABC filed the federal suit Wednesday in Manhattan.
The companies allege the service is illegal and that Cablevision refused pay license fees or share in the revenues it would collect from the service, and contend that Cablevision needs a separate license to offer the service.
Cablevision, which has about 3 million customers on the East Coast, said it had explored the issue earlier and found that it did not violate copyright laws.
Guitar Center Makes Texas Acquisition
Guitar Center Inc. announced on May 22 that that it has signed a definitive agreement to acquire certain assets of Hermes Trading Co. Inc., a Texas-based musical instruments distributor and retailer.
The acquisition includes four retail locations in Texas. As part of the transaction, Westlake-Village based Guitar Center will purchase the existing inventory of musical instruments and equipment for the four locations. The stores will be remodeled and rebranded into Guitar Center format stores. The company now has 12 Guitar Center stores in the state.
The transaction will be funded through Guitar Center’s available cash and credit facility. The acquisition is subject to customary terms and conditions and may be adjusted based on the final determined inventory value. The closing is expected to occur in the second quarter. It is expected that the stores acquired in this acquisition will offset other Guitar Center store openings for 2006.
Paula Expands Personal Lines Business
Pasadena-based Paula Financial said on May 24 that its operating subsidiary, Pan American Underwriters Inc., has acquired the assets of Sunland Insurance Services, a specialty distributor of personal lines insurance with five offices in the San Joaquin Valley.
Terms of the transaction were not disclosed. Pan American anticipates the acquisition will increase the top line by more than 5 percent in the first 12 months and will more than double Pan American’s personal lines inventory, Pan American Chief Executive Jeff Snider said in a statement.
– Anne Riley-Katz, Deborah Crowe
