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.
With 15 radio stations across the United States including Island-wide
coverage in Puerto Rico and top-rated stations in New York and Los Angeles,
SBS has total market capitalization of about $1.5 billion.
“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.