One of Latin America's largest media and
entertainment companies, the Cisneros Group of Companies has announced that its
digital advertising unit RedMas has acquired Kontextua, an online advertising
company with an extensive network in Latin America and Spain.
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 Germán Herebia and Carlos Córdoba, 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.
