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“Love don’t cost a thing.” But J-Lo knows Fuse does. It costs $226 million, to be exact. Jennifer Lopez’s NUVOtv outbid Diddy’s REVOLT TV to buy Fuse from The Madison Square Garden Company (MSG) in April. Diddy offered $200 million for Fuse in March. He believes MSG never intended to sell the network to him and used his bid to drive up the price of Fuse.

Whether or not that is true, why is Fuse, a “low-rated” music television channel, worth $226 million? A big piece of the answer to this question lies in its reach. Fuse reaches 73 million homes across the country. NUVOtv and REVOLT reach around 33 million homes each. Fuse is very valuable to a smaller network who wants to expand.

Lopez has had business success with perfume, clothing and the Latino cell phone market (Viva Movil). In 2011, she added TV network owner to her resume. Lopez owns a minority equity stake in SiTV Media, NUVOtv’s parent company. She’s also the “face” and Chief Creative Officer of the network, managing marketing and program production. While she played no part in the negotiations, Lopez says there are many plans for Fuse on the way. Mum’s the word on those plans for now. But Lopez recently said, “It’s a wonderful new asset for us as a company. Everyone was very excited by the fact that we could make that happen.”

NUVOtv is an English-language, Latino-targeted network that has mostly original, non-music shows. Fuse is a music network that covers pop, urban, punk, heavy metal and indie. The focus is not to change Fuse’s format to attract a Latino audience. Lopez’s manager, Benny Medina stated, “We do look at these channels as two different companies. They have two different identities. They have different audiences. They’re goals are different. These shall remain intact.”

MSG will get a 15% equity stake in SiTV Media along with a seat on the company’s board of directors. It is all set to happen once the deal is finalized between July and September of this year.

A board of directors is a group of people who oversee the direction of a company. It is often called just “the board”. It will be involved in any big decisions the company makes. The people on the board will include: a founder, the CEO, a few venture capitalists (VCs) and outside members.

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