SBS Acquires Majority Stake in LaMusica.com
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Miami-based Spanish Broadcasting System Inc. (SBS)--the nation's largest Hispanic-owned radio company--has acquired a majority interest in LaMusica.com, a Latin Internet music site.
The deal will give SBS 80 percent ownership of LaMusica.com, which generates over three million hits per month, making it the most-visited Latino music Internet site. Financial terms were not disclosed.
SBS said the deal creates an advertising opportunity to reach members of the Hispanic media market through two mediums with a single buy.
Formed in 1995, New York City-based LaMusica.com features concert listings, a world-wide club directory, articles about popular Latin stars, CD reviews, and record charts, as well as allowing users to view music videos, hear CD-quality sound and purchase CDs. LaMusica is also slated to begin publication of a quarterly glossy magazine this summer.
"The Hispanic media market is booming--26 million people with a purchasing power of $279 billion," said Raul Alarcon Jr., president and CEO of SBS. "With the purchase of LaMusica.com we are providing advertisers a new, more streamlined way to reach these consumers, while providing our own listeners with a first-class Internet service."
The SBS purchase will also entail the integration of individual local SBS radio portals, and an opportunity to procure additional revenue through the sale of ancillary SBS products.
LaMusica.com President Juan Esteban, an event marketer and music agent, and the site's creator, Internet personality Little Judy, will stay on with the company and continue to oversee day-to-day operations.