Entravision (NYSE:EVC) Communications Corporation (NYSE:EVC), a leading media and marketing technology company, has announced that Meta Platforms (NASDAQ:META), Inc. ("Meta") will be terminating its authorized sales partner (ASP) program globally. This change, set to take effect by July 1, 2024, will also conclude Meta's relationship with all its ASPs, including Entravision.
This development came to light on Monday when Entravision received an official communication from Meta, detailing the planned wind-down of the ASP program.
The decision by Meta is significant for Entravision, as the ASP program constituted a substantial portion of the company's revenue. In the full year of 2023, the program contributed $586.4 million to Entravision's total consolidated revenue of $1,106.9 million.
In response to Meta's decision, Entravision has begun a thorough review of its operating strategy and cost structure. The company has committed to providing updates on its future plans as soon as they become available and practicable.
The conclusion of the ASP program represents a pivotal shift for Entravision, necessitating a strategic reassessment to address the impending loss of a major revenue stream.
The information regarding this announcement is based on a recent SEC filing by Entravision.
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