Fernando Espuelas
Encyclopedia
Fernando Espuelas is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
) is an American entrepreneur, author, media personality and philanthropist.
Espuelas is one of the pioneers of the consumer Internet. He is the co-founder (along with Jack Chen) and first CEO of Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
, the first pan-Latin Internet portal, launched in 1996 and now part of Orange, France Telecom
France Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
's Internet services company. Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
was the first venture-capital backed Latin Internet company and also the first IPO in the Latin Internet industry. By the year 2000, Starmedia was the leading Latin portal, serving over 25 million Spanish and Portuguese speakers every month across Latin markets in America and Europe, making it one of the top sites in the world.
According to the Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
case StarMedia: Launching a Latin American Revolution , "by the fall of 1999,StarMedia had sprinted to a sizable lead in the race to acquire Latin American Internet users. Its pan-regional, horizontal portal was the first to target Spanish- and Portuguese-language speakers on the Internet, registering 1.2 billion page views in the third quarter of 1999. Thirty-three-year-old StarMedia co-founder Fernando Espuelas was the toast of "Silicon Alley
Silicon Alley
Silicon Alley is a nickname for an area with a concentration of Internet and new media companies in Manhattan, New York City. Originally, the term referred to the cluster of such companies extending from the Flatiron District down to SoHo and TriBeCa along the Broadway corridor, but as the location...
" and a recognized hero throughout Latin America. A picture of him on the cover of Internet World magazine--ripping his shirt open to show the StarMedia logo, like Superman
Superman
Superman is a fictional comic book superhero appearing in publications by DC Comics, widely considered to be an American cultural icon. Created by American writer Jerry Siegel and Canadian-born American artist Joe Shuster in 1932 while both were living in Cleveland, Ohio, and sold to Detective...
, summed up the spirit of the company."
Many years before social media would play a leading role in the Arab Spring
Arab Spring
The Arab Spring , otherwise known as the Arab Awakening, is a revolutionary wave of demonstrations and protests occurring in the Arab world that began on Saturday, 18 December 2010...
, Espuelas presaged that the Internet would provoke an "uncontrollable wave of democracy" and give "the power of information and communication to the individual, not to institutions."
Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
and CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
named Espuelas as one of the “Leaders of the Millennium”, and he was recognized as a “2000 All-Star” business leader by Crain's New York Business magazine. The World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....
includes him among its "Global Leaders of Tomorrow," and he was also a recipient of Latin Trade Magazines Bravo Award, being named "Internet CEO of the Year". Hispanic Business
Hispanic Business
Hispanic Business, Inc. is a media company based in Goleta, California, in the United States of America. The firm was founded by Jesús Chavarría in 1979 and its publications are oriented towards Hispanic professionals and entrepreneurs.-Publications:...
magazine gave Espuelas its Hispanic Entrepreneur Award in 2000. He received a New York
New York (magazine)
New York is a weekly magazine principally concerned with the life, culture, politics, and style of New York City. Founded by Milton Glaser and Clay Felker in 1968 as a competitor to The New Yorker, it was brasher and less polite than that magazine, and established itself as a cradle of New...
Award in 1999. He was also named a "Latin American Leader of the Internet" by CNN en Español
Espuelas is a Henry Crown Fellow at the Aspen Institute
Aspen Institute
The Aspen Institute is an international nonprofit organization founded in 1950 as the Aspen Institute of Humanistic Studies. The organization is dedicated to "fostering enlightened leadership, the appreciation of timeless ideas and values, and open-minded dialogue on contemporary issues." The...
.
Espuelas has been part of the "power-list" of such diverse media as The Hollywood Reporter
The Hollywood Reporter
Formerly a daily trade magazine, The Hollywood Reporter re-launched in late 2010 as a unique hybrid publication serving the entertainment industry and a consumer audience...
, The Industry Standard
The Industry Standard
The Industry Standard is a news web site dedicated to technology business news, part of InfoWorld, a news web site covering technology in general...
, Latino Leaders Magazine, Red Herring Magazine, Silicon Alley Reporter
Silicon Alley Reporter
Silicon Alley Reporter was an American trade publication focused on New York's Silicon Alley.Founded by Jason Calacanis in 1996, then was renamed the Venture Reporter in 2001 and was eventually sold to Dow Jones in 2003....
, Hispanic Business Magazine, CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
, Upside Magazine and Hispanic Magazine. Espuelas was also named "Immigrant of the Day" by Immigration Daily in 2008.
Espuelas was the co-founder and Chairman of the StarMedia Foundation which, in partnership with the Inter-American Development Bank
Inter-American Development Bank
The Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean...
and Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
, built technology training schools in poor neighborhoods in Brazil, Colombia and Uruguay. Espuelas served on the Board of Directors of the Educational Broadcasting Corporation, operators of PBS
Public Broadcasting Service
The Public Broadcasting Service is an American non-profit public broadcasting television network with 354 member TV stations in the United States which hold collective ownership. Its headquarters is in Arlington, Virginia....
' New York flagship television station THIRTEEN (WNET) and WLIW
WLIW
WLIW, channel 21, is a non-commercial educational public television station licensed to Garden City, New York; which serves as a secondary Public Broadcasting Service member station for the New York City television market...
, as well as on the Board of Trustees of Connecticut College
Connecticut College
Connecticut College is a private liberal arts college located in New London, Connecticut.The college was founded in 1911, as Connecticut College for Women, in response to Wesleyan University closing its doors to women...
. In 2009, Espuelas became a spokesman for the Los Angeles Parent's Union, also known as Parent Revolution, a non-profit group that seeks to reform public education across the United States. In 2010, Espuelas was elected to the Board of Directors of Parent Revolution.
In 2003, Espuelas wrote Life in Action
Life in Action
Life in Action is a book by Fernando Espuelas, published by Penguin Books in 2004, as an auto-biographical and philosophical story using Espuelas' experiences from childhood in Uruguay, through his early years in the United States, to the founding of Starmedia, the first Latin portal and VOY, as a...
(published by Penguin Books
Penguin Books
Penguin Books is a publisher founded in 1935 by Sir Allen Lane and V.K. Krishna Menon. Penguin revolutionised publishing in the 1930s through its high quality, inexpensive paperbacks, sold through Woolworths and other high street stores for sixpence. Penguin's success demonstrated that large...
in 2004), an auto-biographical book describing his philosophy of self-actualization, framed through historical examples such as Winston Churchill
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...
, Espuelas' personal hero, to Mahatma Gandhi
Mahatma Gandhi
Mohandas Karamchand Gandhi , pronounced . 2 October 1869 – 30 January 1948) was the pre-eminent political and ideological leader of India during the Indian independence movement...
, and Martin Luther King Jr.. Life in Action
Life in Action
Life in Action is a book by Fernando Espuelas, published by Penguin Books in 2004, as an auto-biographical and philosophical story using Espuelas' experiences from childhood in Uruguay, through his early years in the United States, to the founding of Starmedia, the first Latin portal and VOY, as a...
recounted Espuelas' story from childhood in Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
, through his early years in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, to his business success and struggles after the Internet industry collapse of 2001.
Espuelas created VOY in 2004, a digital media company focused on "Latinos and those discovering Latin culture". VOY's portal was launched in 2005. Forrester Research
Forrester Research
Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Forrester Research has five research centers in the US: Cambridge, Massachusetts; New York, New York; San Francisco, California;...
's study "Hispanic Social Computing Takes Off", published in June 2007, ranked VOY's portals as the leading Latin pure-play social network in the United States.
In 2007, Espuelas was named a Henry Crown Fellow at the Aspen Institute. Latinvision.com selected Espuelas as one of the "Top 50 Who Matter Most!" list of Latino media executives in 2008. The U.S. Hispanic IT Executive Council (HITEC) named Espuelas in 2009 and 2010 to its HITEC 100, the list of "Most Influential Hispanics and Rising Stars in Information Technology". Espuelas' video biography is available here: "The Fernando Espuelas Story".
In 2008, Espuelas created Fernando Espuelas Show, a primetime, daily bilingual talkshow broadcast on the Univision
Univision
Univision is a Spanish-language television network in the United States. It has the largest audience of Spanish language television viewers according to Nielsen ratings. Randy Falco, COO, has been in charge of the company since the departure of Univision Communications president and CEO Joe Uva...
Radio Network, and online at espuelas.com
Espuelas also blogs for the Huffington Post, espuelas.com and is a frequent commentator on television, online and in print across the world.
Childhood
In Life in ActionLife in Action
Life in Action is a book by Fernando Espuelas, published by Penguin Books in 2004, as an auto-biographical and philosophical story using Espuelas' experiences from childhood in Uruguay, through his early years in the United States, to the founding of Starmedia, the first Latin portal and VOY, as a...
, Espuelas writes about studying at the Elbio Fernández school, a prestigious private school in Montevideo
Montevideo
Montevideo is the largest city, the capital, and the chief port of Uruguay. The settlement was established in 1726 by Bruno Mauricio de Zabala, as a strategic move amidst a Spanish-Portuguese dispute over the platine region, and as a counter to the Portuguese colony at Colonia del Sacramento...
. Espuelas' family in Uruguay was financially secure until his father, a real estate entrepreneur, abandoned them when he was 8 years old.
Seeking survival at a time when Uruguay experienced acute political and economic crisis, Espuelas and his mother immigrated to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1976 with only $100. After a series of factory jobs making everything from dresses to ice cream sandwiches, his mother found work as a housekeeper in Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
".
Espuelas said to The Industry Standard
The Industry Standard
The Industry Standard is a news web site dedicated to technology business news, part of InfoWorld, a news web site covering technology in general...
, "As a kid I had to leave my home country, Uruguay, when my parents got divorced and my mother couldn't support herself. We lost everything overnight, so we came to the United States. For 10 years we lived in a one-bedroom apartment, and my mother worked 12 hours a day. It is not that these types of experiences make you a better person, but they give you a different perspective on failure. I've seen people older than I go into panic mode and lose confidence in themselves because of tough market conditions, thinking that it's the end of the world. Personally, I always know I'll be able to survive."
As he recounted on PBS' Tavis Smiley
Tavis Smiley
Tavis Smiley is a talk show host, author, liberal political commentator, entrepreneur, advocate and philanthropist. Smiley was born in Gulfport, Mississippi and grew up in Kokomo, Indiana. After attending Indiana University, he worked during the late 1980s as an aide to Tom Bradley, the mayor of...
show, Espuelas started his first business in Greenwich, while in 5th grade, when he convinced his friends to invest in a kid's bank and insurance company. The next year, he founded the first student government in North Street School and was elected President of his class. He later began the school's newspaper, serving as editor-in-chief.
According to the Latino Leaders article "Making a comeback: the Fernando Espuelas Story", "Espuelas had to become the man of the house, while his mother got a job as a housekeeper in wealthy Greenwich, Connecticut."
"It was quite difficult to have all that responsibility at first. We were one of the only Latin families growing up. It was very interesting to be in that environment; it was such a complete departure from our lives in Uruguay. Essentially, we were in a place where people didn't want you, and didn't understand what you were about," he said. And though Espuelas did not speak any English, "growing up like that provided a tremendous incentive for me to learn."
"Because they were desperate for money, a still-enterprising Espuelas started a bank and an insurance company--his first US business, at the ripe old age of ten. "I managed to convince some of my wealthy sixth grade friends to invest. It was a very simple business though: we were just able to give money to kids who needed to borrow it. It was successful, and I was very proud of that."
Espuelas attended Greenwich High School
Greenwich High School
Greenwich High School is a four-year public high school in Greenwich, Connecticut, United States. The school is part of the Greenwich Public Schools system and serves roughly 2,700 students....
, graduating in 1984. At Greenwich High, Espuelas was the President of the Debate Team and the Connecticut State Champion debater in 1982, as well as the Chairman of the Political Action Club. Espuelas also hosted the local Public-access television
Public-access television
Public-access television is a form of non-commercial mass media where ordinary people can create content television programming which is cablecast through cable TV specialty channels...
cable TV show "The Bottom Line with Fernando Espuelas," interviewing Greenwich personalities.
Espuelas worked in a series of jobs while going to junior high and high school: gardener; gas station attendant; Woolworth's
F. W. Woolworth Company
The F. W. Woolworth Company was a retail company that was one of the original American five-and-dime stores. The first successful Woolworth store was opened on July 18, 1879 by Frank Winfield Woolworth in Lancaster, Pennsylvania, as "Woolworth's Great Five Cent Store"...
clerk; restaurant worker; movie usher; newspaper delivery boy; messenger; Chinese food delivery person; pet shop cleaner; baby sitter; electronics board assembler in an electronic church organ manufacturing company; clerk at a soda fountain; greeting card salesman; and as an intern at Philip Morris
Altria Group
Altria Group, Inc. is based in Henrico County, Virginia, and is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations...
' headquarters in New York.
In 1988, Espuelas graduated "with distinction" from Connecticut College
Connecticut College
Connecticut College is a private liberal arts college located in New London, Connecticut.The college was founded in 1911, as Connecticut College for Women, in response to Wesleyan University closing its doors to women...
with a degree in history. While at Connecticut College
Connecticut College
Connecticut College is a private liberal arts college located in New London, Connecticut.The college was founded in 1911, as Connecticut College for Women, in response to Wesleyan University closing its doors to women...
, Espuelas was first the Managing Editor, then Editor-in-Chief and eventually Publisher of the college's newspaper, The College Voice and its associated publications. Espuelas also served as the President of Branford House, as well as on several college-wide faculty-student-administration committees, including the College's Education Committee. He was later elected to the Board of Trustees of Connecticut College.
Career
In 1988, Espuelas was hired out of college as an assistant account executive by WundermanWunderman
Wunderman is a network of advertising, marketing and consulting companies with offices in 55 countries. Headquartered in New York City, Wunderman is part of Young & Rubicam Brands and a member of WPP Group .- History :...
Worldwide, a division of the Young & Rubicam
Young & Rubicam
Y&R is a marketing and communications company specializing in advertising, digital and social media, sales promotion, direct marketing and brand identity consulting.-History:...
advertising agency. While at Wunderman, Espuelas worked on the American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
, General Foods
General Foods
General Foods Corporation was a company whose direct predecessor was established in the USA by Charles William Post as the Postum Cereal Company in 1895. The name General Foods was adopted in 1929, after several corporate acquisitions...
Gevalia
Gevalia
Gevalia is the largest coffee roastery in Scandinavia. In North America, the company sells coffee and teas directly to consumers via home delivery. Customers order from a customer servicenter and a website that was relaunched in August 2009...
and Weight Watchers
Weight Watchers
Weight Watchers is an international company that offers various dieting products and services to assist weight loss and maintenance. Founded in 1963 by Brooklyn homemaker Jean Nidetch, it operates in about 30 countries around the world, generally under names that are local translations of “Weight...
accounts. After a year at Wunderman, he became an account executive at IPG
Interpublic Group of Companies
The Interpublic Group of Companies, Inc. is one of the "big four" global advertising holding companies . Headquartered in New York City, it has 41,000 employees and reported full−year revenues of US$6.5 billion for 2010...
's Lowe & Partners to work on the agency's Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
Visa account.
In 1991, Espuelas returned to South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
to work at Ogilvy & Mather
Ogilvy & Mather
Ogilvy & Mather is an international advertising, marketing and public relations agency based in Manhattan and owned by the WPP Group. The company operates 497 offices in 125 countries with approximately 16,000 employees.-History:...
's Argentine operations. In Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, Espuelas was the founding Managing Director of Ogilvy & Mather Direct. Starting with one account, Espuelas led the company to be O&M Argentina's single largest source of profit by the second year of operations. After 2 months in Argentina, Espuelas was additionally named head of the company’s Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....
account, responsible for a portfolio of global brands such as Dove
Dove
Pigeons and doves constitute the bird family Columbidae within the order Columbiformes, which include some 300 species of near passerines. In general terms "dove" and "pigeon" are used somewhat interchangeably...
and Ponds. The Unilever business was one of the most important accounts for both O&M in Argentina and across its worldwide network. At the end of 1991, Espuelas was elected to the Board of Directors of Ogilvy & Mather
Ogilvy & Mather
Ogilvy & Mather is an international advertising, marketing and public relations agency based in Manhattan and owned by the WPP Group. The company operates 497 offices in 125 countries with approximately 16,000 employees.-History:...
Argentina, at the age of 25.
"It was really unbelievable-I went from being an account executive in New York to being the managing director of a company and director of a big client's business. That was really incredible!....The experience would have taken me five years to accumulate in New York, and I was able to gather it in six months." Espuelas said to Latino Leaders. "My businesses were 35 percent of the profits for the whole company it was just a tremendous growth experience."
With all the years he spent in the US, Espuelas found himself needing to relearn Spanish. "This was very challenging, but after two and a half years I was able to regain my proficiency in the language. The funny thing was that it actually helped business; the executives there loved the fact that I sounded like a gringo!" Another amusing fact: Espuelas had to lie about his age, because "I looked so young!"
In 1994 AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
recruited Espuelas to lead the roll-out of the AT&T brand throughout Latin America. Within a year, he was promoted to Managing Director of Marketing Communications for the Latin American and Caribbean region, becoming one of the youngest executives of that rank at the company. While at AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
, Espuelas conceived and launched AT&T Hola (in Spanish) and AT&T Ola (in Portuguese), the company’s first online service. A combination of news feeds from Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...
, interactive forums, online games and the first search engine that searched in Spanish and Portuguese, AT&T Hola/Ola was positively received by both the media and consumers across Latin America.
In 1996, Espuelas envisioned the portal that would “unite” Latin America: Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
. "With the Internet, we're talking about a fundamental shift in the power structure from the institution to the individual," Espuelas said.
After a frustrating year and a half of approaching venture capitalists to invest in his vision, only to have them uniformly refuse, many avowing that Latins "did not like technology" and would never use the Internet, the company went on to raise $2.5 million dollars in 1997.
It was the first venture capital ever invested in a Latin Internet company. Over the next 4 years, the company raised over $500 million in investments, including capital from Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
, GE Capital
GE Capital
GE Capital is the financial services unit of General Electric, one of five major units. Its various divisions include GE Capital Aviation Services, GE Capital Real Estate, GE Energy Financial Services and GE Money....
, Ebay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
, the Hearst Corporation
Hearst Corporation
The Hearst Corporation is an American media conglomerate based in the Hearst Tower, Manhattan in New York City, New York, United States. Founded by William Randolph Hearst as an owner of newspapers, the company's holdings now include a wide variety of media...
, Intel Capital, NBC
NBC
The National Broadcasting Company is an American commercial broadcasting television network and former radio network headquartered in the GE Building in New York City's Rockefeller Center with additional major offices near Los Angeles and in Chicago...
and David Rockefeller
David Rockefeller
David Rockefeller, Sr. is the current patriarch of the Rockefeller family. He is the youngest and only surviving child of John D. Rockefeller, Jr. and Abby Aldrich Rockefeller, and the only surviving grandchild of oil tycoon John D. Rockefeller, founder of Standard Oil. His five siblings were...
.
According to the New York City Investment Fund, "[Espuelas]...spoke about the impact, similar to that of economic integration on European nations, that his business would have unifying Latin American people separated by national borders. A board member interrupted him. It was David Rockefeller, retired head of Chase Manhattan, brother of Nelson, and a longtime pillar-the pillar-of corporate involvement in New York City life. Rockefeller wanted to hear more. He invited Espuelas to his office."
"It was the most exciting thing in my life," says the entrepreneur. He recalls how the meeting went: "I didn't close the sale with him until I showed him a map of Latin America without any borders. He said, 'Oh, that's good.'" Rockefeller and the Fund became investors in StarMedia, which moved its headquarters from Connecticut to the city and quickly grew to more than 700 employees worldwide. Espuelas tells this story at a reception that New York's corporate elite was throwing for Rockefeller's 86th birthday. He introduces Rockefeller as his "shareholder, partner, and inspiration."
"They have managed to come up with a pretty big capital raising at the intersection of two of the most volatile investment themes in America: the Internet and Latin America," said Lanny Baker, an analyst of on-line media industry for Salomon Smith Barney in San Francisco."
In 1999, the company went public on the Nasdaq
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
, the first Latin Internet company to do so, eventually reaching a market valuation of over $3.8 billion USD at its peak. Starmedia had over 1,200 employees in 18 offices across 12 countries in the Americas and Europe. Today, Starmedia is France Telecom's single largest Internet operation in the world, according to company statements.
Espuelas later launched VOY as a multi-media platform, with both Internet and visual content divisions. In 2007, Forrester Research's study "Hispanic Social Computing Takes-off" ranked VOY's portals as the leading Latin social network pure play brand in the United States.
As part of its initial branding strategy, VOY released the award winning documentary, Favela Rising. The film received widespread critical acclaim. Espuelas said at the time of the release, “Favela Rising
Favela Rising
Favela Rising is a 2005 documentary film by American directors Jeff Zimbalist and Matt Mochary. It was produced by Sidetrack Films and VOY Pictures. It debuted at the Tribeca Film Festival on April 24, 2005 where it won the award for Best New Documentary Filmmaker for Zimbalist and Mochary...
encapsulates the VOY philosophy of optimism and self-empowerment. The film’s message of hope transforms people, motivates and inspires us to action.” Telling the true story of one man's struggle against violence and racism to start a social movement for peace, Favela Rising
Favela Rising
Favela Rising is a 2005 documentary film by American directors Jeff Zimbalist and Matt Mochary. It was produced by Sidetrack Films and VOY Pictures. It debuted at the Tribeca Film Festival on April 24, 2005 where it won the award for Best New Documentary Filmmaker for Zimbalist and Mochary...
won over 35 major international awards and was short listed for an Academy Award nomination. It premiered at the Tribeca Film Festival
Tribeca Film Festival
The Tribeca Film Festival is a film festival founded in 2002 by Jane Rosenthal, Robert De Niro and Craig Hatkoff in a response to the September 11, 2001 attacks on the World Trade Center and the consequent loss of vitality in the TriBeCa neighborhood in Lower Manhattan.The mission of the festival...
in 2005 and was seen around the world through the film festival circuit. In 2006 it opened in theaters across the U.S. and Brazil and later made its U.S. television debut on HBO/Cinemax
Cinemax
Cinemax, sometimes abbreviated as simply "Max", is a collection of premium television networks that broadcasts primarily feature films, along with softcore erotica, original action series, documentaries and special behind-the-scenes features. Cinemax is operated by Home Box Office, Inc., a...
.
In 2007, Espuelas was named a Henry Crown Fellow at the Aspen Institute.
Espuelas is the host and managing editor of The Fernando Espuelas Show, a primetime, daily bi-lingual talkshow http://www.espuelas.com/page/radio-espuelas.html on the Univision
Univision
Univision is a Spanish-language television network in the United States. It has the largest audience of Spanish language television viewers according to Nielsen ratings. Randy Falco, COO, has been in charge of the company since the departure of Univision Communications president and CEO Joe Uva...
Radio Network, and online at espuelas.com He also appears frequently as a commentator on television and in print.
"The Fernando Espuelas Show"
Espuelas created, hosts and is the managing editor of his eponymously-named radio talkshow on UnivisionUnivision
Univision is a Spanish-language television network in the United States. It has the largest audience of Spanish language television viewers according to Nielsen ratings. Randy Falco, COO, has been in charge of the company since the departure of Univision Communications president and CEO Joe Uva...
Radio. Launched in Los Angeles 2008, "The Fernando Espuelas Show" is broadcast nationally on the Univision Radio Network and streams online at espuelas.com.
Focused on politics, Espuelas has interviewed on "The Fernando Espuelas Show" myriad political leaders, including: California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
Governor Arnold Schwarzenegger
Arnold Schwarzenegger
Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....
, U.S. Secretary of Labor Hilda Solis
Hilda Solis
Hilda Lucia Solis is the 25th United States Secretary of Labor, serving in the Obama administration. She is a member of the Democratic Party and served in the United States House of Representatives from 2001 to 2009, representing the 31st and 32nd congressional districts of California that include...
, U.S. Secretary of Education Arne Duncan
Arne Duncan
Arne Duncan is an American education administrator and currently United States Secretary of Education. Duncan previously served as CEO of the Chicago Public Schools.-Early years and personal:...
, former Speaker of the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
Newt Gingrich
Newt Gingrich
Newton Leroy "Newt" Gingrich is a U.S. Republican Party politician who served as the House Minority Whip from 1989 to 1995 and as the 58th Speaker of the U.S. House of Representatives from 1995 to 1999....
, California Governor Jerry Brown
Jerry Brown
Edmund Gerald "Jerry" Brown, Jr. is an American politician. Brown served as the 34th Governor of California , and is currently serving as the 39th California Governor...
, New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
Governor Gary Johnson
Gary Johnson
Gary Johnson may refer to:*Gary Johnson , former Governor of New Mexico and candidate for President in 2012*Gary Johnson , American politician, Wisconsin State Assembly...
, candidate Meg Whitman
Meg Whitman
Margaret Cushing "Meg" Whitman is an American business executive. She is the President and Chief Executive Officer of Hewlett-Packard. A native of Long Island, New York, she is a graduate of Princeton University and Harvard Business School...
, Congressman Xavier Becerra
Xavier Becerra
Xavier Becerra is the U.S. Representative for , serving since 2003. He is a member of the Democratic Party. The district is based in Los Angeles.-Early life, education and career:...
, Congresswoman Maxine Waters
Maxine Waters
Maxine Waters is the U.S. Representative for , and previously the 29th district, serving since 1991. She is a member of the Democratic Party....
, Congresswoman Loretta Sanchez
Loretta Sanchez
Loretta Sanchez is the U.S. Representative for , and previously the 46th, serving since 2003. She is a member of the Democratic Party, and a member of the Blue Dog Coalition. The district lies in central Orange County....
, Congressman George Miller, Congresswoman Judy Chu
Judy Chu
Judy May Chu, Ph.D. is the U.S. Representative for , serving since 2009. She is a member of the Democratic Party....
, Mayor of San Francisco Gavin Newsom
Gavin Newsom
Gavin Christopher Newsom is an American politician who is the 49th and current Lieutenant Governor of California. Previously, he was the 42nd Mayor of San Francisco, and was elected in 2003 to succeed Willie Brown, becoming San Francisco's youngest mayor in 100 years. Newsom was re-elected in 2007...
, Mayor of Los Angeles Antonio Villaraigosa
Antonio Villaraigosa
Antonio Ramón Villaraigosa , born Antonio Ramón Villar, Jr., is the 41st and current Mayor of Los Angeles, California, the third Mexican American to have ever held office in the city of Los Angeles and the first in over 130 years. He is also the current president of the United States Conference of...
, Mayor of Palm Springs Steve Pougnet
Steve Pougnet
Stephen P. "Steve" Pougnet is an American politician and the current mayor of Palm Springs, California. His term will expire in 2011. Pougnet is a member of the Democratic Party.Pougnet is openly gay...
, Mayor of Costa Mesa Allan Mansoor
Allan Mansoor
Allan Mansoor is an American politician currently serving in the California State Assembly. He is a Republican representing the 68th district, encompassing a part of Orange County. Prior to being elected to the state assembly, he was the mayor of Costa Mesa.- External links :* * ...
, California Lt. Governor & State Senator Abel Maldonado
Abel Maldonado
Abel Maldonado is an American politician who was the 48th Lieutenant Governor of California. On November 23, 2009, then-Governor Arnold Schwarzenegger announced Maldonado as his nominee for Lieutenant Governor to fill the vacancy created by John Garamendi's election to the United States House of...
, Leader of the California State Assembly Majority, Assemblyman Alberto Torrico
Alberto Torrico
Alberto Torrico is a member of the California Unemployment Insurance Appeals Board. He formerly represented the 20th Assembly District which includes Fremont, Newark, Union City and Milpitas among other cities in the East Bay...
, Leader of the Hispanic Caucus in the California Assembly Senator Gil Cedillo
Gil Cedillo
Gilbert Anthony Cedillo is a politician and a member of the Democratic Party. He is currently serving in the California State Assembly....
, and Rosario Marin
Rosario Marin
Rosario Marin , was the 41st Treasurer of the United States from August 16, 2001 to June 30, 2003 serving under President George W. Bush. She is the first person to assume the post since William Clark who was not born a United States citizen . She is the only U...
former Treasurer of the United States, among other elected leaders.
Espuelas makes frequent public appearances including live performances such as the "Fernando Espuelas Live!" show that sold out the historic Alex Theatre in Glendale, California.
"The Fernando Espuelas Show" is Univision
Univision
Univision is a Spanish-language television network in the United States. It has the largest audience of Spanish language television viewers according to Nielsen ratings. Randy Falco, COO, has been in charge of the company since the departure of Univision Communications president and CEO Joe Uva...
's first English-language talkshow.
StarMedia
In a highly publicized moment of inspiration that was recounted in numerous articles and television segments, Espuelas envisioned a "virtual plaza to connect the peoples of Latin America" while hiking atop a mountain in NepalNepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...
. Soon after, Espuelas founded Starmedia with his Chinese-American childhood friend, Jack Chen.
As Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
's Chairman and CEO, collaborating with co-Founder and Starmedia President Jack Chen, Espuelas created the first Internet media company for Spanish- and Portuguese-speaking audiences worldwide. Using a combination of their 12 credit cards, family savings, and loans from friends, the pair managed to piece together the first $100,000 used to launch the Latin portal in September 1996.
"Shares of StarMedia Networks, the most highly anticipated of last week's offerings, closed 74 percent above its initial offering price of $15 per share on Wednesday, its first day of trading," reported The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
at the time of StarMedia's IPO. Gail Bronson, an analyst at IPO Monitor, said on CNN, "StarMedia is the behemoth south of the border."
Eventually Starmedia raised over $500 million USD in equity in a series of private and public offerings. Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
's market capitalization reached $3.8 billion dollars.
Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
's success served as an important catalyst in the development of the Latin Internet market by encouraging both entrepreneurs and financiers to back the development of the sector. According to ComputerWorld
Computerworld
Computerworld is an IT magazine that provides information for senior IT leaders. It is published in many countries around the world under the same or similar names. Its publisher is International Data Group. Computerworld serves the needs of IT management via print and online...
, "StarMedia's success is credited with igniting the vibrant enthusiasm that the Latin America Internet market currently enjoys, and which has led a number of companies to follow in StarMedia's footsteps, including big guns like Spain's Telefonica SA, America Online Inc. (AOL), Yahoo, Lycos, Brazil's UOL Inc. and Microsoft Corp., as well as cocky startups like Patagon.com International Ltd., Zona Financiera Inc. and Yupi Internet Inc."
"Today, New York City-based StarMedia is widely seen as a market pioneer and, so far, as the player to beat in the Latin America portal market. The company has about 700 employees, operations in 9 countries and partnerships with companies such as AT&T, Visa International Inc. and Hewlett-Packard Co," added ComputerWorld
Computerworld
Computerworld is an IT magazine that provides information for senior IT leaders. It is published in many countries around the world under the same or similar names. Its publisher is International Data Group. Computerworld serves the needs of IT management via print and online...
.
"I applaud the company for contributing to the continued growth of the city's high-tech community," said New York Mayor Rudolph W. Giuliani to the New York Times.
At the time of the IPO, Espuelas told CNET: "I think we present a unique story, where maybe the other companies were versions of companies that already existed. We also have market leadership, we have a big brand, we're the first mover into a really big market with a lot of growth potential, and I think the market recognized that and sort of differentiated us from just another Internet IPO."
"The strategy is simple: Build on being the first Internet service to cater to Latin American PC owners on a regional basis rather than country by country, and try to keep a step ahead of the inevitable competition. So far, the positioning has allowed StarMedia to make deals with Fox Latin America for sports and children's programming, with Dow Jones for financial news, and with Viacom Spelling Entertainment Group for TV show Melrose Place and other nighttime soap operas," explained Business Week in the article "Welcoming Spanish Speakers to the Web: Fast-growing StarMedia is Racing to Fill the Niche First"
Espuelas added: "We are literally creating an industry, we have built, but will continue to construct, the biggest brand in Latin America."
In a 1999 New York Times story, "C.E.O. Round Table- Online Pioneers: The Buzz Never Stops", Espuelas explained his approach: "I spent a lot of time learning how Winston Churchill ran the Second World War. I bring that up as a metaphor—not having information, not having clarity, the stakes being very high. Of course, the stakes he had to deal with were somewhat higher than what we have to do. But that was part of the encouragement—to think that something so important could be managed, and all the mistakes that were made and the chaos of the moment. And the other thing, which he said, which I love as a philosophy, is: You don't have to get it right all the time. You just have to get it right 51 percent of the time, and that will carry you through. And that's a very, very liberating philosophy."
According to the Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
case StarMedia: Launching a Latin American Revolution , written by professors Thomas Eisenmann and John K. Rust, "by the fall of 1999, StarMedia had sprinted to a sizable lead in the race to acquire Latin American Internet users. Its pan-regional, horizontal portal was the first to target Spanish- and Portuguese-language speakers on the Internet, registering 1.2 billion page views in the third quarter of 1999. Thirty-three-year-old StarMedia co-founder Fernando Espuelas was the toast of "Silicon Alley
Silicon Alley
Silicon Alley is a nickname for an area with a concentration of Internet and new media companies in Manhattan, New York City. Originally, the term referred to the cluster of such companies extending from the Flatiron District down to SoHo and TriBeCa along the Broadway corridor, but as the location...
" and a recognized hero throughout Latin America. A picture of him on the cover of Internet World magazine--ripping his shirt open to show the StarMedia logo, like Superman
Superman
Superman is a fictional comic book superhero appearing in publications by DC Comics, widely considered to be an American cultural icon. Created by American writer Jerry Siegel and Canadian-born American artist Joe Shuster in 1932 while both were living in Cleveland, Ohio, and sold to Detective...
, summed up the spirit of the company."
Espuelas created a communications culture to connect StarMedia's 18 offices in 12 countries. "[Espuelas]...will set a goal at one meeting, and by the time the next one rolls around, we've made tremendous progress....Each meeting has a clear goal—to deliver quarterly results, to announce a major initiative or partnership, to clarify our strategic vision. Whenever possible, Fernando and other executives make their comments trilingually. That sometimes generates good-natured teasing about accents, but our employees really appreciate the effort. To make certain that nothing is lost in the translations, someone from each office recaps the entire announcement in that country's native tongue. Then we follow up with an online chat, during which the management team fields questions from employees," said Gally Bar-on, chief of staff, StarMedia Network Inc. and president, StarMedia Foundation.
"Our overriding goal is to communicate clearly across language barriers and geographic boundaries. By connecting with all of our offices -- and by addressing everyone in three languages -- we're able to unite our employees around one company vision...The one thing that we hear consistently from our employees is, 'We want more Fernando.' They want to know what he's thinking. This meeting allows him to communicate his vision," added Bar-on.
In a ComputerWorld
Computerworld
Computerworld is an IT magazine that provides information for senior IT leaders. It is published in many countries around the world under the same or similar names. Its publisher is International Data Group. Computerworld serves the needs of IT management via print and online...
interview Espuelas said, "What we have to do is remain absolutely focused on giving our users the best possible experience, and giving our partners and advertisers a mutually profitable relationship. We're really looking forward, not backwards. All of this competition has stimulated the market in a very dramatic fashion, in terms of marketing, in terms of growing the market, in terms of the attention of advertisers, partners and Wall Street. So we see it very positively. We just need to make sure we're never satisfied with ourselves, and we're not. We can always be better and faster and more efficient."
In the Business Week cover story "La Vida Loca of a Latin Web Star" Espuelas is described as: "If ever there were a poster boy for the bilingual, bicultural executive of the Internet age, it's Fernando J. Espuelas, the 33-year-old chairman and chief executive of New York-based StarMedia Networks Inc. The Spanish- and Portuguese-language portal offers everything from chat rooms to shopping. Born in Uruguay, Espuelas moved to the U.S. at age 10. He has worked much of his adult life in Latin America, but when wooing investors, he's all Wall Street."
The company’s high profile, as manifested in its thousands of press articles across the world, ensured that the whole Latin Internet sector benefited from a constant source of positive attention and relevance. Billions of dollars were subsequently invested in Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
by foreign and local companies, international venture capitalists and buy-out firms seeking to capitalize in the fast growth of this new segment.
Myriad companies were created and funded, telecommunications companies made significant investments in infrastructure to meet the demand, and governments and other key sectors of the society, specifically the news media, adopted Web tools to modernize. Espuelas sought to "...redefine history – and I think that, in fact, is what happened...The StarMedia idea of Pan Latin Americanism, an idea with deep historical roots, was a profound turning point for Latinos across the world."
Espuelas, a skilled marketer armed with cash from his successful IPO, was the mastermind of massive marketing campaigns promoting the StarMedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
brand.
"We want to be the Coca-Cola of the Internet in Latin America," Espuelas said.
In the process, Espuelas became iconic as the “poster boy” of the Latin Internet, appearing on the cover of magazines, in television shows and even in CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
’s own promotions: a brief image of Espuelas was included, amongst other renowned politicians and celebrities, within the 15 second top-of-hour CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
on-air network ID.
Additionally, CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
filmed a documentary on Espuelas’ life that was broadcasted across the world. The media referred to Espuelas as "The Hispanic Bill Gates
Bill Gates
William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...
"and "The New Simon Bolivar
Simón Bolívar
Simón José Antonio de la Santísima Trinidad Bolívar y Palacios Ponte y Yeiter, commonly known as Simón Bolívar was a Venezuelan military and political leader...
", terms that would be often recapitulated in thousands of articles and interviews referencing Starmedia.
On May 25, 1999, StarMedia completed the first public offering on Nasdaq
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
for a Latin Internet company, selling 7 million shares at $15. The company went on to raise hundreds of millions more capital over the next 2 years. By 2000, at age 34, Espuelas was acknowledged as one of the main players in Silicon Alley and the Latino Internet industry. Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
's leading newspaper, El Pais, dubbed him “The Emperor of the Internet” on its front page.
On August 5, 2001, after a disagreement with the Board regarding the strategic direction of the company, Espuelas resigned as CEO of StarMedia but agreed to stay on as Chairman until November 15, 2001 to effect an orderly management transition. At that time, he was replaced by Susan Segal as head of he company; Segal was a venture capitalist, representing Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
's Chase Capital Partners, which had given Starmedia its first round of institutional financing in 1997. Segal then led the company’s new strategy to divest itself of its market leading portal assets, including the StarMedia brand and network of websites, and focus the company on its mobile unit, StarMedia Mobile. The resulting new company, Cyclelogic, was led by Segal until it filed for bankruptcy in 2003.
As part of Segal's new strategy, in July 2002, StarMedia was sold for $8 million USD to EresMas, a Spanish ISP. EresMas was then sold to a unit of France Telecom
France Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
a week later for $250 million dollars. EresMas' new leadership of the Latin Internet (through the purchase of StarMedia the previous week) was cited by France Telecom
France Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
as the reason for the acquisition.
Espuelas writes in Life in Action
Life in Action
Life in Action is a book by Fernando Espuelas, published by Penguin Books in 2004, as an auto-biographical and philosophical story using Espuelas' experiences from childhood in Uruguay, through his early years in the United States, to the founding of Starmedia, the first Latin portal and VOY, as a...
: “Because I believed in our company and our mission, I had never sold a single StarMedia share or stock option. I personally lost close to $500 million.”
In 2006, the U.S. SEC sued Espuelas and the rest of StarMedia's senior executive team alleging in a civil lawsuit that the accounting treatment of a certain transaction relating to StarMedia's Mexican subsidiaries did not meet GAAP accounting standards. The civil lawsuit relates to accounting decisions made by StarMedia and its outside accounting firm Ernst & Young, and approved by the Starmedia Board of Director's Audit Committee in 1999 and 2000. In 2011, Espuelas settled the suit "without admitting or denying the allegations in the amended complaint".
At the time of the filing, Espuelas, who cooperated with the SEC investigation over 5 years, told Adweek
Adweek
Adweek is a weekly American advertising trade publication that was first published in 1978....
magazine: "I know that I did nothing wrong.…It [the lawsuit] is related to accounting issues at the company. I personally was not involved in accounting at the company. I'm very confident that the company did things right. We had a rather elaborate control function, both internal and external, and to my knowledge that was undertaken correctly."
In company announcements made in 2006, StarMedia, now part of France Telecom
France Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
, the company claimed to be the global leader in Spanish language Internet services. In 2008, the company stated, Starmedia
Starmedia
StarMedia is a leading Latin Internet brand, co-founded in August 1996 by Fernando Espuelas and Jack Chen as the first pan-regional Internet portal for Spanish and Portuguese speaking audiences...
was serving over 24 million unique users a month and continued to expand by launching new services, such as finance and entertainment channels, and opening offices across Latin America.
In the Hispanic Business
Hispanic Business
Hispanic Business, Inc. is a media company based in Goleta, California, in the United States of America. The firm was founded by Jesús Chavarría in 1979 and its publications are oriented towards Hispanic professionals and entrepreneurs.-Publications:...
article "The Kings of Comebacks", Espuelas said, "...we [at StarMedia] wanted to redefine history - and I think that...is what happened," Mr. Espuelas writes in his 2004 book Life in Action
Life in Action
Life in Action is a book by Fernando Espuelas, published by Penguin Books in 2004, as an auto-biographical and philosophical story using Espuelas' experiences from childhood in Uruguay, through his early years in the United States, to the founding of Starmedia, the first Latin portal and VOY, as a...
. "The StarMedia idea of Pan Latin Americanism, an idea with deep historical roots, was a profound turning point for Latinos across the world." But in the spring of 2000, StarMedia suffered what the book calls "the near-complete collapse of the Internet economy." By his own calculation, Mr. Espuelas' StarMedia holdings at one point had a value of nearly $500 million, but he never sold a single share. "I lived a full cycle," he tells Hispanic Business
Hispanic Business
Hispanic Business, Inc. is a media company based in Goleta, California, in the United States of America. The firm was founded by Jesús Chavarría in 1979 and its publications are oriented towards Hispanic professionals and entrepreneurs.-Publications:...
. "It was the best business and personal experience I could have had at this point in my life."
External links and references
- Parent Revolution The Los Angeles Parent's Union
- espuelas.com Fernando Espuelas' Official Site
- "Espuelas'Video Biography" The Fernando Espuelas Story
- CNN Commentary: Latinos should see gay marriage a civil right, November, 2008
- Mediafly Fernando Espuelas Speaks at University of Virginia Darden School of Business' Latin America Business Conference, Podcast, February, 2008.
- The New York Sun Here's a Classic New York Story of No View Being Permanent, January 2008
- Aspen Institute Fernando Espuelas Named Henry Crown Fellow at the Aspen Institute, May, 2007
- The Tavis Smiley Show, PBSPublic Broadcasting ServiceThe Public Broadcasting Service is an American non-profit public broadcasting television network with 354 member TV stations in the United States which hold collective ownership. Its headquarters is in Arlington, Virginia....
“Fernando Espuelas Interview”, December 10, 2004 - The Tavis Smiley Show, NPRNPRNPR, formerly National Public Radio, is a privately and publicly funded non-profit membership media organization that serves as a national syndicator to a network of 900 public radio stations in the United States. NPR was created in 1970, following congressional passage of the Public Broadcasting...
, “VOY CEO Fernando Espuelas on Hispanic Market”, May 12, 2004 - Latino Leaders 'The Fernando Espuelas Story', June–July, 2004 by Susan Hornik
- Espuelas.com Spurs Debate Fernando Espuelas' Official Biography
- The Christian Science Monitor "Social media: Did Twitter and Facebook really build a global revolution?"
- Time Magazine "The Big and Little Fish of the Web"
- The HuffingtonPost Espuelas' Blogs
- Facebook Espuelas' Facebook Community Page