SEEKING
ALPHA - Feb 19 - When social networks myYearbook and Quepasa merged in
2011, they gave themselves an appropriate brand name MeetMe.
MeetMe has grown since the merger, but is still a small company with a
market cap of $112.46M. Given its recent growth and outlook, it may be
an attractive buyout target for Facebook or Google. Why? MeetMe provides
a platform for meeting new people through social games and apps on
Apple and Android smartphones and tablets. The company derives revenues
through ads and virtual currency, with ~60% of traffic coming from
mobile devices. In the last five years, revenue has grown 5300%. In two
years - 2009 through 2011 - the company's revenues grew from $536K to
$11.85M. Facebook is primarily about finding friends and interacting
with them, and so is Google+. MeetMe, on the other hand, is more about
new relationships and social discovery. It makes an attractive
acquisition for either of the two players, as they could be interested
in expanding their reach to social discovery. With a valuation in the
range of only $110M, MeetMe is an easy buyout for the likes of Google
and Facebook. Another company that would possibly be interested in
MeetMe could be Microsoft if it plans to enter the social media space in
a big way.
by Jason Bond
See full article at Seeking Alpha
See all posts on MeetMe
This post also appears on SocialNetworkingWatch.
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