Quote:
Originally Posted by peterk
few moaths back they bought this http://www.forbes.com/sites/ericsavi...site-jigocity/ FriendFinder Networks this morning announced the acquisition of BDM Global Ventures, the parent of JigoCity, a local daily deals site, for 1.6 million in FFN shares and about 6.4 million of FFN warrants with strike prices ranging from $5 to $18 a share. The company said the deal could be worth as much as $65 million; but note that FriendFinder closed Friday at $2.71, which means the stock portion of the deal is worth just $4.3 million, with the resent dependent on the performance of FFN?s stock in the months and years ahead.
Based in Los Angeles, JigoCity has about 150 employees, and operates sites in Australia, Brazil, China, Hong Kong, Singapore and Taiwan. According to FriendFinder, JigoCity had revenue of about $600,000 in July and $1.1 million in August, and now has over 1 million members.
they are not stupid they are diversifying into games and daily deals sites. they will be around for a long time. |
Actually, they are incredibly stupid and have proven that they fail at diversification. The acquisition you reference above was a colossal failure for them. Their stock price is plummeting and about to be delisted and they are close to getting to a point where their massive debt will no longer be able to be restructured. I see a point within a year where they'll have to abandon their affiliate program because they simply won't have enough cash on hand to sustain it.
"One of Bell?s failed ventures was a transaction in
September 2011 to buy an international daily-deals business
called JigoCity. FriendFinder lost about $11.5 million on
JigoCity this year, then sold the firm back to its previous
owner for $1 on August 1, according to the Aug. 14 regulatory
filing."
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