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COPYRIGHT 2005 The Miami Herald
Byline: Beatrice E. Garcia
Mar. 27--Last week's news that AOL Latin America is considering filing for bankruptcy protection was no surprise.
The Fort Lauderdale-based Internet service provider, which started out as a venture funded by Time Warner's America Online unit and Venezuela's powerful Cisneros Group of Companies, has been limping along for nearly a year, unable to find additional cash to keep operating. It has enough money to continue through the third quarter.
The company wasn't a victim of another stock market crash or initial lack of capital. Actually, it has raised $711.5 million from investors since it formed in mid-1998.
Rather, AOL Latin America was a victim of a rapidly changing market in Latin America for Internet service providers.
Internet companies have to be extremely nimble in Latin America to compete with "well-entrenched, well-financed and well-known" local rivals, said...
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