SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JANUARY 8, 2001
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STARMEDIA NETWORK, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-15015 06-1461770
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
29 WEST 36th STREET
NEW YORK, NEW YORK 10018
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 905-8200
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75 VARICK STREET, NEW YORK, NEW YORK 10013
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(Former name or former address, if changed since last report)
[STARMEDIA LOGO]
STARMEDIA ANNOUNCES SALE OF CADE? TO YAHOO! BRASIL
TRANSACTION REFLECTS THE COMPANY'S EVOLVED STRATEGY IN BRAZIL
SAO PAULO, BRAZIL - JANUARY 8, 2002 - StarMedia Network (NASDAQ: STRME)
(www.starmedianetwork.net), an integrated Internet Media and Business Solutions
company targeting Spanish- and Portuguese-speaking audiences, announced today
that it has reached an agreement to sell Cade?, a popular Brazilian search
engine and web directory acquired in 1999, to Yahoo! Brasil, a property of
Yahoo! Inc. (Nasdaq:YHOO), a global Internet communications, commerce and media
company. The financial terms of the transaction were not disclosed.
The sale is an important step in the evolution of StarMedia's strategy as an
integrated Media and Business Solutions company to provide value to clients
primarily through a combination of direct response marketing programs and
sponsorships as well as portal development services and wireless technology and
applications, to enable its clients to capitalize on the Internet to reach their
business objectives. A search and web directory is not in line with this new
strategy.
"StarMedia maintains a unique position across its markets by offering integrated
Media and Business Solutions across multiple platforms through the combination
of technology, content and audience," said Enrique Narciso, CEO and President of
StarMedia. "We continue to evolve our offerings and remain committed to
providing our clients and partners effective solutions that encourage customer
loyalty, differentiate their products and services, and increase their over all
revenues." Mr. Narciso added.
The transaction announced today will enable StarMedia to concentrate its
resources to strengthen products that are available on multiple platforms in
order to capitalize on both its media and wireless offerings for clients in
Brazil, one of the Company's primary markets.
StarMedia remains focused on providing the latest wireless solutions to its
clients across the region and in Brazil. The Company has established
relationships with major carriers, such as Telemig Celular for whom StarMedia
launched the first wireless Internet service in Brazil, and more recently a
comprehensive location-based service. StarMedia created solutions that were
compatible with carriers' existing infrastructure, and continues to provide
clients with the latest solutions to differentiate themselves in the
marketplace, while extending their customer offerings, and creating additional
revenue streams.
Additionally, StarMedia continues to strengthen its Media Solutions offering
clients in Brazil, including Banco do Brasil, Ford, Pfizer, and Xerox,
innovative solutions to reach their target market in a measurable and effective
way.
"Brazil is one of our most important markets and a cornerstone of our Business
Solutions strategy, given our partnerships with eight wireless carriers in the
country, representing 50% of the carrier market,"* said Jose Manuel Tost, Chief
Operating Officer of StarMedia. "The sale of Cade?, will allow us to re-deploy
the proceeds of the transaction into other areas of our business, and to
ultimately extend StarMedia's competitive advantage in Brazil and
pan-regionally, which is based on a combination of our robust wireless and
online advertising technology, content, and our audience," concluded Tost.
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* STARMEDIA HAS SUCCESSFULLY DEPLOYED MOBILE INTERNET PRODUCTS AND/OR
SERVICES WITH 8 MAJOR BRAZILIAN CARRIERS. THESE INCLUDE: TELEMIG, AMAZONIA
CELULAR, ATL, AMERICEL, CTBC, TELET, TELESP CELULAR, AND TESS.
JUPITER RESEARCH EXPECTS THE NUMBER OF WIRELESS SUBSCRIBERS IN BRAZIL TO
CLIMB FROM APPROXIMATELY 31 MILLION IN 2001 TO MORE THAN 52 MILLION IN
2003.
- SOURCE: JUPITER RESEARCH 9/00
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ABOUT STARMEDIA NETWORK, INC.
StarMedia Network is an integrated Internet Media and Business Solutions company
targeting Spanish- and Portuguese-speaking audiences, providing technology and
services that enable consumers and businesses to take full advantage of the
Internet. The company has operations in Argentina, Brazil, Chile, Colombia,
Mexico, Puerto Rico, Spain, Uruguay, Venezuela, and throughout the United
States.
For more information, please visit our corporate web site at
http://www.starmedianetwork.net/
THIS PRESS RELEASE CONTAINS STATEMENTS OF A FORWARD-LOOKING NATURE WITHIN THE
MEANING OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 RELATING TO FUTURE EVENTS OR FUTURE FINANCIAL RESULTS OF
STARMEDIA NETWORK, INC. INVESTORS ARE CAUTIONED THAT SUCH STATEMENTS ARE ONLY
PREDICTIONS AND ARE BASED ON MANAGEMENT'S CURRENT EXPECTATIONS OR BELIEFS AND
ARE SUBJECT TO A NUMBER OF FACTORS THAT COULD CAUSE ACTUAL EVENTS OR RESULTS TO
DIFFER MATERIALLY. IN CONSIDERING SUCH STATEMENTS, INVESTORS SHOULD SPECIFICALLY
CONSIDER VARIOUS FACTORS WHICH COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER
MATERIALLY FROM THOSE INDICATED FROM SUCH FORWARD-LOOKING STATEMENTS, INCLUDING
THE MATTERS SET FORTH IN STARMEDIA NETWORK, INC.'S REPORTS AND DOCUMENTS FILED
FROM TIME TO TIME WITH THE SECURITIES AND EXCHANGE COMMISSION. FOR EXAMPLE,
MANAGEMENT'S FORWARD-LOOKING STATEMENTS COULD PROVE TO BE INCORRECT DUE TO
CHANGES IN ECONOMIC CONDITIONS IN COUNTRIES IN WHICH STARMEDIA NETWORK OPERATES;
CHANGES IN STARMEDIA NETWORK'S ABILITY TO MAKE AVAILABLE CONTENT, TOOLS AND
APPLICATIONS OF INTEREST TO POTENTIAL USERS; ADVERSE CHANGES IN THE STARMEDIA
NETWORK'S LIQUIDITY OR ITS ABILITY TO FUND ITS SUBSIDIARIES TO THE EXTENT
NECESSARY; AND OTHER FACTORS.
MEDIA INQUIRIES:
David Duckenfield Mariana Cavin
YAHOO! STARMEDIA NETWORK
305-529-4464 212 905 8267
duck@yahoo-inc.com mariana.cavin@starmedia.net
Julie Fuentes Monique Jaramillo
GRUPO UNO STARMEDIA NETWORK
305-448-6111 212 905 8272
julie@grupouno.com monique.jaramillo@starmedia.net
INVESTORS:
Celina Feldstein
ZEMI COMMUNICATIONS
212 689 9560
celinaf1@attglobal.net