Spanish publishing and multimedia giant Grupo Correo has appointed a new CEO and restructured its organisation into five main business areas with an eye toward expansion and in preparation for a planned spring stock flotation.
Jose Maria Bergareche, current general manager of Correo and right-hand man to chief Alejandro Echevarria, will take over as CEO. Echevarria leaves the CEO position in order to focus on his concurrent post as president of broadcaster Telecinco, a Grupo Correo interest. Echevarria will also stay on as an adviser to Bergareche. Juan Ignacio Mijangos will replace Bergareche as general manager.
The Group also announced it will restructure its organisation into five divisions: media; new technology; regional press and multimedia interests; international; and other related corporate interests. The Group has plans to invest heavily in its current and new media interests, and expand into Latin America.
Among Correo's top media interests are: 25% of Telecinco (co-owned with Germany's Kirch Group and Italy's Mediaset, partners Correo looks likely to grow with); a 30% stake taken in film and TV production house BocaBoca last December; a 17% stake in film producer Esicma; and 17% of TV producer Grupo Arbol (home of Globomedia).
Correo's deal with the successful BocaBoca more than doubled its presence in Spain's film sector. The deal leaves the door open for Correo to take an additional 30% interest before January 2002.
Correo is also shaping up to become a key source of content for Spain's burgeoning television market, set to grow with two new free-to-air DTT platforms launching this summer.
The company is expected to float an initial 20% of its capital before the end of the year. Telecinco has been studying the possibility of a subsequent stock flotation.