85% majority bought for $20 mil
MIAMI — CIE, Latin America’s leading live-entertainment company, has acquired a majority stake in Internet holding company Latin Entertainment while bringing in a financial partner and its capital into the venture.
In January, CIE inked an option to acquire an 85% stake in Latin Entertainment for $20 million in capital plus exclusive content for Latin’s two Web sites: http://www.elfoco.com, a sports and entertainment portal for Spanish- and Portuguese-lingo users, and Mexican e-mail site http://www.correoweb.com.
CIE announced Wednesday that it had exercised the option and had brought in the venture capital arm of Mexican financial conglom Inbursa, with which it is co-invested in several other projects. Inbursa will provide a capital infusion of $50 million for a 31.5% stake, diluting CIE’s holding to 58.2% in a deal that values Latin Entertainment at $158 million.
The capital investments from CIE and Inbursa will be used to expand both sites, including their advertising campaigns, for working capital and to acquire additional sites.
Latin Entertainment is already established in Mexico and Argentina. In the first step in its international expansion, it will begin operations in Spain this month, then in Brazil in July and in the U.S. Hispanic market in August.
CIE content to be supplied to Elfoco.com includes exclusive info on sports and other stars, backstage visits to CIE-promoted concerts, behind-the-scenes looks at concerts and sporting events, and special offers on online ticket sales and promotions.