Quepasa, the Faceb k for Latinos has merged with social networking business myYearb k for $100 million, approximately $82 million of hin Quepasa stock that is common approximately $18 million in money.
MyYearb k, which has raised $17 million in capital, is just a profitable network that is social focuses on younger teenage users. While nevertheless smaller than Faceb k, myYearb k is seeing over 1 billion page views on mobile platforms and 1.2 billion page views on the web each month. In reality, it is the top website within the comScore teenagers category with additional visits, minutes, and pageviews. This year, myYearb k produced $23.7 million in revenue, up 53% year-over-year, and EBITDA of $4.9 million, up 315% year-over-year. Quepasa says more than 27 million users that are registered.
The combined properties has 70 million users, 2.2 million app that is mobile, 11.5 million mobile game installs, and 2.1 million social exact same installs.
Quepasa CEO read the full info here, John Abbott says that the acquisition and merger doubles how big is QuepasaвЂ™s current individual base, and also could express a fresh growth area for QuepasaвЂ™s mobile and social games, advertising, and currency that is virtual. MyYearb k additionally recently launched a gaming portal.
After the merger, myYearb k CEO Geoff C k will serve as Chief working Officer of Quepasa Corporation and President of its customer online Division, and also will join the ongoing companyвЂ™s Board of Directors.
HereвЂ™s the note C k delivered to myYearb k workers this morning
Today myYearb k signed a вЂњdefinitive agreementвЂќ to merge with Quepasa (QPSA), a publicly exchanged company. As I would have preferred to do, but I do want to let everyone know why I am so excited by this merger and by the opportunity we have to build an enduring, global brand for meeting new people because it is publicly traded and to limit legal and regulatory concerns, I was not able to personally inform everyone of this ahead of time.
I want to assure every one of a few important facts Your job remains safe before I get into the logic behind the merger. This merger to our intention is to develop, and develop faster, never to make cuts. Your task is as secure you, five years ago as it was a month ago, a year ago, or in the case of many of. The work postings we now have up are remaining up. We shall continue steadily to aggressively grow. Our tradition is not changing. a product-first mind-set, a dedication to tackling difficult technical jobs and getting things live, a culture of shared respect, supper for those who stay belated, free gymnasium memberships, all-you-can-drink caffeine, company-wide lunches, open-d r policies, softball groups with increased heart than talent, our location, and all the other little items that make the corporation great, will not change. I am perhaps not going anywhere. I view this deal as a stepping-stone to developing a billion-dollar international brand name around social discovery. As President regarding the Consumer Web Division and Chief working Officer regarding the combined business, I shall have obligation for both myYearb k and Quepasa . I will additionally be joining the Quepasa Board along with 2 other Board people that have history of supporting myYearb k. I wish to build the corporation in to a brand that is billion-dollar social discovery and conference brand new people. I believe QuepasaвЂ™s big user base in rising markets, and talented, 40-person social game studio are essential pieces of the puzzle that will ensure we’re the people who possess meeting brand new individuals around the globe. In my opinion this combination could be the fastest course to global leadership in social breakthrough, and I also enjoy continuing to do business with every body to create we, our culture, and finally our brand to delight users.
I see this as being a doubling-down on our ability to build products that are great to monetize, and eventually to generate meaningful relationships among our users. There exists a reason we now have grown our business profitably while navigating the waters that are same capsized Bebo, Myspace, and so many other social support systems one another. We have an united group that delivers, and we have culture that works.
The maximum amount of promise when I see, this is perhaps not a decision that is easy. I understand full well how hard it really is to create a $30 million revenue company profitably with over 100 people that are talented. We understand how hard its to attract the skill and build the culture we now have right here. But I also know how difficult it is go from where our company is now to building an enduring brand that people the planet over recognize and love. And to do that, we must embrace modification. Using this deal we will end up being the public-market leader in social breakthrough. Now, itвЂ™s as much as us to keep to provide.
Support from our Board and investors has made all the difference in helping to grow myYearb k from a few hundred pupils in Montgomery High Sch l in Skillman, NJ to over 32.7 million new users today. Terry and Eva Herndon, who lots of you may not know, have actually backed the business from the start and supported my previous company before that. They offered their ideas on this combination вЂњAs founding funders of two of GeoffвЂ™s businesses, Eva and I are extremely excited by the immense growth potential for myYearb k in the Western Hemisphere. We certainly appreciate all that myYearb kвЂ™s team have done to create the business this far this fast and anticipate the imagination still ahead.вЂќ Meanwhile, Rick Lewis, our long-time partner from United States Venture Partners, a well established early-stage VC fund, shows his continued help by agreeing to join the Board regarding the new business since well.
We realize what weвЂ™ve built throughout the last 5 years and how special it is, and I also believe we could continue steadily to build onto it. Merely a small fraction of organizations begin with absolutely nothing and therefore are able to attract capital raising. Of these, only 5-10% have values of $100 million or higher. WeвЂ™re currently a couple of standard deviations past the normal startup, now itвЂ™s time and energy to get a few more and believe we may be truly dominant вЂ“ that people are because prepared as one to create industry for meeting new individuals in a global increasingly shaped by social, by mobile, and also by location.
We donвЂ™t consider this an exit or the finish. We ponder over it the end of this start, and I believe we’ve much more products that are innovative produce. We urge whoever has questions or really wants to talk more about it to come see me personally over the next few weeks and months
You will see company-wide meetings led by Jim in brand New Hope and Bill in nyc today. Sometime right after that, my hope is we could all return to company quickly, building c l stuff, and staying focused on the job at hand.
Geoff C k CEO, myYearb k