Spanish incumbent carrier Telefonica SA has acquired Brazil’s second-largest internet service provider, ZAZ, from the regional TV and newspaper group, Rede Brasil Sul (RBS), from the southernmost state of Rio Grande do Sul. The value of the transaction was not disclosed.
As a result of an agreement announced yesterday, RBS is transferring control of ZAZ to Telefonica Interactiva Brasil, the Spanish telco’s interactive services business in that country. Telefonica said that, as a result of the deal, it now has almost 500,000 clients in online services in the Spanish- and Portuguese-speaking world. Of that total, 190,000 come from ZAZ and Telefonica expects that it will reach 500,000 users in Brazil alone by early 2000.
ZAZ not only provides internet access, but also develops content and business solutions. RBS continues in an alliance with Telefonica and ZAZ, the idea being for each to concentrate on what it knows how to do best.
