StarMedia Network, whose Web sites are geared toward Spanish- and Portuguese-speaking audiences, says it has secured $36 million in financing. BellSouth has purchased $25 million worth of StarMedia convertible preferred stock at $2.55 per share. StarMedia said BellSouth's shares represent an 11 percent stake in the company; the investment is related to an alliance with StarMedia to create co-branded portals throughout Latin America.
StarMedia also said it will receive a direct investment of $11 million by selling convertible preferred stock to a group of investors that includes Primedia, J.P. Morgan partners, the private equity unit of J.P. Morgan Chase, and several other private investors. StarMedia added that it has inked a deal with Primedia, owner of About.com, to create a co-branded product aimed at the U.S. Hispanic market.