In a move to shore up its digital advertising capabilities targeting the Hispanic market, Entravision Communications has bought a majority stake in Cisneros Interactive, a digital advertising company that works with more than two thousand brands and ad agencies in the U.S. and Latin America. The $29 million all-cash deal will give Entravision a 51% stake in Cisneros. And beginning in April 2022 Cisneros will have the option of requiring Entravision to buy the remaining 49%. If that doesn’t happen by 2024 then Entravision will have the right to buy the rest of the company on its own.
“The media space has quickly evolved to demand more performance-based, transparent and digital-focused solutions, and in order to best service our growing client base we continue to enhance our product portfolio and service offering,” said Entravision CEO Walter Ulloa. “This investment aligns with our mission, given the breadth of Cisneros Interactive’s services, the quality of its global partnerships and the sophistication of its sales operations,” he said in the announcement.
Cisneros Interactive will work alongside Entravision Digital, which already provides ad buyers with digital solutions including data, creative and programmatic platforms. Founded in 2010 and headquartered in Miami, Cisneros Interactive has sales partnerships with some of the world’s leading digital technology companies, including Facebook, Spotify and LinkedIn. Its JustMob and Audio.Ad divisions, which focus on mobile video and digital audio, operate across 17 countries.
Adriana Cisneros, founder and CEO of Cisneros, called Entravision’s investment “a significant milestone” for the company saying it will accelerate its growth potential by providing new resources and opening the door to operational synergies with Entravision Digital. “Working hand-in-hand, we will elevate our combined businesses to a global arena of premier digital clients, while generating unique and valuable assets for the marketing and ad-tech industries,” she said in a statement.
All Cisneros Interactive employees will remain with the company, with Victor Kong continuing as President of the new Entravision subsidiary, based in Miami. The longtime media veteran is no stranger to radio either. Earlier in his career, Kong managed CNN Radio for Time Warner.
“This is a very exciting day for our team at Cisneros Interactive,” said Kong. “Having Cisneros and Entravision as joint stakeholders in our company represents a significant move forward in our ability to capture increased market share in high-growth digital economies. I am even more optimistic about the value we can now provide our advertisers and publishers following the introduction to Entravision’s platforms, channels and customers.”