Latin American Web Venture

StarMedia Network Inc., CMGI Inc. and other partners have created a company with a $200-million investment to offer free Web access in Latin America, hoping to attract users as competition in the Internet industry heats up. StarMedia will provide mostly content and the sales staff for the new company, called GRATIS1. CMGI, Flatiron Partners, Chase Capital Partners and 1stUp.com will put up most of the cash investment for the new Internet service provider. GRATIS1 aims to start service in Brazil, Mexico and Argentina by June and other Latin markets soon after that. In Nasdaq trading, StarMedia gained $2 to close at $56, while CMGI fell $4.73 to close at $110.63. StarMedia shares have risen about 70% since Jan. 28.