Entravision Communications has announced the sale of its digital advertising representation business to Aleph Group, following the shutdown of Meta’s Authorized Sales Partner program. The $16.4 million deal should close within two weeks, pending approval by Entravision’s Board.
Meta intends to terminate all ASP relationships by July 1. In March, Entravision announced it would shed the program, which accounted for 53% of $1.107 billion of the company’s consolidated revenue in 2023.
The transaction involves the Hispanic-focused broadcaster’s MediaDonuts and Redmas Ventures divisions. The sale agreement was formalized in an equity purchase agreement between Entravision Digital Holdings and Aleph’s IMS Internet Media Services Inc.
Under the terms, the company will also pay $900,000 to Xavier Torres, Managing Partner at Meta Latam, as part of an earlier agreement. Additionally, a settlement concerning the earn-out agreement with the founders of MediaDonuts is part of the closure terms, obligating Entravision to pay $6.5 million in April 2025 based on past earnings.
Entravision has expanded globally in recent years, acquiring digital and media companies in Asia and Africa.
CEO Michael Christenson said, “While we are disappointed in Meta’s decision, we are confident in Entravision’s long-term opportunities given the strength of our advertising and marketing platforms and the need for our solutions globally.”
“We are conducting an extensive review of our strategy and cost structure to reinforce our operating foundation and ensure we are best positioned to capitalize on Entravision’s global, market-leading advertising, media and technology solutions. Our balance sheet is solid with a strong cash position to support the business as we navigate these changes.”
