Wednesday Quepasa Corporation (NYSE Amex: QPSA), owner of popular Latino social network Quepasa.com and cross-platform social game development studio Quepasa Games, announced that it has executed a definitive agreement to merge with Insider Guides, Inc., DBA myYearbook, the best place to meet new people on the web or mobile device, for $100 million, comprised of approximately $82 million in Quepasa common stock and approximately $18 million in cash. For further information on the merger consideration, see the Form 8-K filed by Quepasa with the Securities and Exchange Commission today.
“With this merger, we intend to create nothing less than the public market leader in social discovery,” noted Quepasa CEO, John Abbott. “Combination with myYearbook nearly doubles the size of Quepasa’s existing user base while positioning the new company for significantly higher growth in mobile and social games, advertising, and virtual currency. The myYearbook team is product-oriented and hungry to continue building innovative products at the convergence of social and mobile. We expect the scale of this combination to enable a new class of investor in Quepasa. We believe myYearbook’s proven track record in monetization and engagement will fuel significant future growth.”
Over the past 12 months, myYearbook has experienced rapid growth in users and in mobile traffic. With over 1 billion page views on mobile platforms and 1.2 billion page views on the web each month, myYearbook is one of the largest media properties in the US. It is also the #1 web site in the comScore Teens category with more visits, minutes, and pageviews than any other site in the category. By emphasizing social discovery, focusing on the people users want to know rather than the people they already know, the service has built a large and growing user base, especially in the teen and young adult demographic. In 2010, myYearbook generated $23.7 million in revenue, up 53% year-over-year, and EBITDA of $4.9 million, up 315% year-over-year.
“We are thrilled to bring our vision of social discovery to a global audience through combination with Quepasa,” noted Geoff Cook, CEO of myYearbook. “Meeting new people is now—and has always been—one of the Internet’s core activities. This combination creates the scale needed to build the #1 player in social discovery. What excites me most about this opportunity is applying myYearbook’s platform for monetization and engagement to Quepasa’s fast-growing markets while also doubling the size of our development team to execute against an aggressive product pipeline focused on social, mobile, and virtual currency.”