Some of the stories the Hispanic Advertising and Media World is talking about this week.
» AOL-Huffpo Latino. In a clear boost to the strategic value of content AOL has purchased the Huffington Post for $365 million. Taking into account that Huffington Post annual sales are between $60 – $65 million a year, the price/sales multiple is a high 6 times sales. But that is the value of content to AOL. “AOL has just placed a big bet on the authentic web at scale,” says Greg Shove, founder and CEO of online branding specialist Halogen. Does the deal have any implications for the Latin world? Well, AOL Latino has recently strengthened its offerings targeting the Hispanic market both in Spanish and by targeting bicultural teens through websites such as Cambio, which is part of the AOL Teens network. Now Arianna Huffington will be in charge of all content at the combined company. It will be interesting to see her take on the Hispanic and Latin American markets. For now, she already has announced her intention to launch a Brazil edition of the Huffington Post. Btw. The Financial Times recently launched a Brazil confidential edition.
» Southern Californian Consolidation of (Hispanic Newspapers)? Freedom Communications has put the Orange County Register on the block, the Los Angeles Times reports. Interested buyers are MediaNews and Platinum Equity, owner of the Union-Tribune. There is an interesting constellation when it comes to Hispanic newspapers in Southern California. The Orange County Register publishes Excelsior (Orange County); San Diego Union Tribune publishes Enlace (San Diego) and Media News publishes Impacto USA (Orange County). Number crunchers at these publishers, some of them backed by private equity houses are looking at ways to save costs through consolidation and more scale. We will keep you posted about new developments.
» More money flowing into online ad-networks.
Chicago-based technology and digital media services company Centro recently secured $22.5 million in equity financing from multi-stage growth equity firm FTV Capital. Portada has known that Centro has intentions to expand into the Hispanic and Latin American digital media markets.
The new financing will fuel increased investment in Centro’s automated digital media buying software, Transis, as well as accelerate a significant expansion of Centro’s sales force targeting mid-tier advertisers and ad agencies.