By @NY Staff
Struggling Latin American portal StarMedia Networks
has sold its Brazilian search engine, Cade, to Yahoo!’s Brasil subsidiary for an undisclosed amount.
The combination of Cade with Yahoo! Brasil is expected to create the third largest portal in Brazil, the companies said.
Brazil has the largest Internet market in Latin America, reaching about 45 percent of the region’s 22 million users, according to market research firm IDC (a division of IDG).
The sale comes as the New York-headquartered StarMedia prepares to restate earnings for all of 2000 and the first half of 2001 because of suspicions that two subsidiaries – AdNet and StarMedia Mexico – improperly recognized approximately $10 million in revenues.
As a result, the company has delayed filing its third quarter report until it squares its earnings investigation regarding its subsidiaries.
Yahoo! Brasil said it would use the Cade assets to create a new property focused on consumers and businesses.