Falling star?

Latin CEO: Executive Strategies for the Americas, Dec, 2001

* The sun may be setting on once high-flying Internet company StarMedia Corp. The New York-based firm, which had been among the first and most vocal proponents of the Internet in Latin America, announced Nov. 19 that it would restate its financial results for the first half of 2001 after it uncovered US$10 million of revenue improperly reported by its Mexican subsidiaries.

The company reported revenues of US$60 million for 2000. Along with the disclosure came reports that StarMedia co-founder and Chairman Fernando Espuelas was asked to resign. JP Morgan Chase executive and StarMedia board member Susan Segal, who was instrumental in financing the firm, will replace Espuelas. Also ousted were CEO Steven J. Heller and general counsel Justin Macedonia. In an unrelated move to consolidate operations, StarMedia closed Zeek!, its Brazil-based news and Web clippings site.