Impremedia, owner of some of the largest Spanish-language daily newspapers in the United States, has sold itself to a private equity-backed start-up looking to capitalize on the growing demand for multicultural audiences.
Impremedia, which operates publications founded in the early 20th century such as El Diario in New York and La Opinion in Los Angeles, is acquired by My Code, an advertising network in Santa Monica, California, aimed at marketers seeking to Hispanic, Black, Asian American and Pacific Islander consumers, executives from both companies said.
Impremedia and My Code declined to give a price for the deal. One person familiar with the sale said My Code paid more than $10 million.
The deal marks a new chapter in the turbulent history of Hispanic newspapers in the United States, many of which have closed in recent decades as print revenues declined and digital entrants took advantage of advertiser demand for Hispanic audiences.
Many major U.S. cities once had daily newspapers aimed at Spanish-speaking readers, says Ken Doctor, a longtime media analyst and chief executive of Lookout Local, a media start-up in Santa Cruz, California. Some English-language newspaper publishers, including the former owners of The Chicago Tribune, started Spanish-language editions to reach new audiences and increase ad revenue.
But the consolidation and cost-cutting that has conquered the ranks of English-language metropolitan dailies has also exhausted Spanish-language publications, Mr Doctor said.
“Just as the regular daily subways struggled with what it meant to be a digital publication, I think this is largely true for the Spanish press,” said Mr Doctor.
Parker Morse, the founder and chief executive of My Code, said in an interview that he wanted to extend the life of Impremedia’s print business while increasing digital revenues, which was a bright spot for the company. He said the deal would help the company reach Latin Americans who “live between two worlds,” by viewing sites like El Diario alongside ESPN, TMZ and CNN.
“I think about two-thirds of Latin American consumers are bilingual and use both English and Spanish-language content,” said Mr. Morse. “And while it may not be 100 percent of that demographic, it’s a big part of it.”
Impremedia was founded in 2003 by John Paton, an entrepreneur who later became CEO of Digital First Media, the newspaper chain controlled by the hedge fund Alden Global Capital. Mr Paton, who is now chairman of The Independent, a London-based news publisher, bought El Diario and other titles with his partners to build a Spanish news conglomerate. It was acquired in 2012 by a subsidiary of the Argentine newspaper La Nación.
Impremedia’s CEO, Iván Adaime, said in an interview that the company’s titles were an essential resource for readers who did not speak English or whose issues were ignored by the Anglophone press. Mr Adaime, an immigrant from Argentina, said he would stay after the deal was closed.
“I am deeply committed to that mission,” said Mr. adame. “It’s a mission that was there before I was born, but it’s a mission that fits me very well.”
