Cisneros' Redmas Acquires Kontextua
Deal will strengthen group's digital presence in U.S. Hispanic market and in Latin America
By George Winslow -- Broadcasting & Cable, 9/24/2012 7:26:05 PM
Terms of the deal were not disclosed.
As part of the acquisition, RedMas will also invest $2 million in Kontextua to create new digital advertising platforms, and to extend the online network's reach in the U.S. Hispanic market, as well as in Chile, Mexico, Brazil and Colombia.
The deal is expected to strengthen Cisneros' digital presence in the U.S. Hispanic market and Latin America.
"Latin America's $2.5 billion digital advertising market is growing at an accelerated rate of 15% to 20% annually," noted Cisneros Group's chief digital officer Victor Kong in a statement. "With Internet penetration at only 35% in the region, this market holds vast potential for RedMas. The acquisition will not only contribute revenue to the Cisneros Group's other sites, such as www.venevision.com, www.noticierovenevision.com, and www.missvenezuela.com, but it will also complement its new business strategy of focusing on digital advertising, e-commerce, and social gaming."
The Cisneros Group's media and entertainment holdings include Venevision, the leading television network in Venezuela, Venevision International, a global Spanish-language entertainment company; and Venevision Productions, a major supplier of telenovelas for North American and world audiences.
Kontextua was founded two years ago by GermÃ¡n Herebia and Carlos CÃ³rdoba, who will join the Cisneros Group's digital management team.
Its advertising network currently has more than 12,000 affiliated Spanish- and Portuguese-language websites reaching an audience of 60 million Spanish and Portuguese speakers and is used by over 800 advertisers in regional advertising campaigns.
"We are pleased to be part of an organization with a clear digital vision, and to be at the forefront of the expansion of its online advertising businesses in the region as part of the RedMas brand," explained Herebia in a statement.
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