eHarmony Has "Significant" Acquisition Capability

MERGER MARKET -- Sep 9 -- eHarmony is interested in buying online content companies as it builds toward an initial public offering, CEO Gregory Waldorf said. eHarmony has passed the minimum requirements to go public, but it has no capital needs at present. eHarmony declined to comment specifically on targets. Internet dating industry consultant Mark Brooks said Mary.com could be an attractive target. Waldorf said eHarmony is "very profitable" and generated USD 200m in 2007. Asked whether eHarmony might expand to allow male seeking male, or female seeking female partners, Waldorf did not answer directly, saying the content is for anybody who would find it useful. Brooks said it is possible eHarmony fears a public reception would be tainted by its association with social networking businesses, which have not been as financially successful as some hoped. Brooks said it may be waiting for people to forget about Chemistry.com's recent advertising campaign, which invited homosexuals "rejected" by the eHarmony site to join its service.

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