StarMedia Sin Las Espuelas.
July 13, 2001
Last week, StarMedia Network reported larger than expected losses. Fernando Espuelas – CEO of StarMedia Network also stated that the company would not meet their promise of becoming profitable by year’s end.
Due to the shortfall, Fernando Espuelas has step down from his position of President & CEO of the company and Enrique Narciso will become the new CEO of StarMedia Network. Mr. Espuelas will remain as Chairman of the company and will have limited responsibilities.
Insiders speculate, that the board requested that Mr. Espuelas step down and allow for a new management of the company to lead the way to profitability. An issue that has eluded StarMedia Network, which has sufered the same effects that other cinternet company have faced with a slowing economy and a restricted amount of new capital infusions.
“As StarMedia’s largest investor, we are confident in StarMedia’s ability to continue its market leadership under Enrique’s experienced guidance,” said Susan Segal, Partner, JPMorgan Partners.
“We look forward to working with StarMedia under Enrique’s leadership to continue to execute on our strategic alliance,” said Roberto Peon, Chief Marketing Officer of BellSouth International.
