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This "new era" broke from the conventional Spanish-language programming model, the changes made for the 1998–99 lineup included the complete removal of telenovelas from its prime time schedule, citing the inferior quality of the South American serial dramas that it had been acquiring compared to the Mexican serials from Televisa that were carried by Univision.The revamped evening lineup that premiered on September 28, 1998 included several new sitcoms, traditional scripted dramas and game shows with higher production values, including several scripted shows that were remakes of English language series owned by Columbia Tri Star Television (now Sony Pictures Television), to position the network as a younger-skewing alternative to Univision more acculturated to assimilated American Latinos.The network also began to produce its own original telenovelas, the first of which to premiere were Angélica, mi vida ("Angelica, My Life"), Marielena, Guadalupe, Señora Tentación ("Lady Temptation") and Tres Destinos ("Three Destinations").International distributors soon approached the network for the syndication rights to air these programs on television networks in other countries.Telemundo's effort faced an initial setback when Mexico's leading broadcaster, Televisa, purchased production company Capitalvision, which had been producing the telenovelas in conjunction with the network.Parent company Telemundo Group experienced major financial challenges during this time, filing for Chapter 11 bankruptcy protection in 1994, due to a debt load of more than 0 million that the company owed to its creditors.

The station was also known for its "fingers" logo – a bold number "2" with the silhouette of two upright fingers inside the number – and referred to itself as "El canal de los dedos" ("The Channel of the Fingers").

These stations joined KVEA (channel 52) in Los Angeles, run by its general manager and part-owner Joe Wallach, in 1985.

The following year, KVEA's part-owner, Reliance Group Holdings, acquired the Telemundo brand when it purchased John Blair & Co., which also owned WSCV (channel 51) in Fort Lauderdale–Miami-West Palm Beach in addition to WKAQ-TV. In 1987, Reliance Capital Group executives Saul Steinberg and Henry Silverman merged all these stations into the Telemundo Group.

On November 25, 1997, Liberty Media and Sony Pictures Entertainment purchased a majority interest in Telemundo from Reliance Capital Group for 9 million, beating out a bid made days earlier by an investment group led by Telemundo Group chairman Leon Black, who had already owned 40.3% of the network through Apollo Global Management and remained a minority partner in Telemundo Group through the purchase; under the deal, Liberty acquired a 40% interest and Sony (which made its entry into domestic broadcasting ownership with the deal) acquired a 35% stake in Telemundo, with the remaining interest held by investment firms Apollo Global Management and Bastion Capital Fund.

On November 25, 1997, several investors who held shares in Telemundo Group filed an injunction to block the sale in a Delaware Chancery Court, in order to investigate whether executives were shortchanging shareholders in accepting the offer; that request, as well as a separate injunction request by Univision Communications, were later rejected.

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