Terra plans to launch in Europe

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Terra Networks, the Latin American online media company that emerged out of a high-profile dotcom-era boom and bust story, is planning to launch in several European countries, with help from its Spanish parent company, Telefónica.

Launched as the internet arm of Telefónica, Terra saw a near threefold jump in its share price at its initial public offering in 1999, valuing it at $10.99bn. It then bought Lycos for stock in a $12.6bn transaction, only for its value to plunge.

The group has been repositioned as an online video and digital music company with almost 100m users a month in Latin America and among US Hispanics.

Fernando Madeira, chief executive of Terra Latin America and USA, said it had begun trials in Spain of a site focusing on live events, entertainment and sports, with the aim of a launch in June.

The site would have more than 60 staff in Spain by the end of 2012, he said, with a small team in Portugal, to provide “a local accent” in a market where some users already access its content for the Brazilian market.

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