Quepasa, the Facebook for Latinos has merged with social networking company Insider Guides, Inc., DBA myYearbook for $100 million, approximately $82 million of hin Quepasa common stock and approximately $18 million in cash.
MyYearbook, which has raised $17 million in funding, is a profitable social network that focuses on younger teenage users. While still smaller than Facebook, myYearbook is seeing over 1 billion page views on mobile platforms and 1.2 billion page views on the web each month. In fact, it is the top web site in the comScore Teens category with more visits, minutes, and pageviews. 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.
"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.", said Quepasa CEO, John Abbott.
Following the completion of the merger, which is expected in the fourth quarter of 2011, subject to certain closing considerations described in the Merger Agreement, Geoff Cook will serve as Chief Operating Officer of Quepasa Corporation and President of its Consumer Internet Division while joining the company's Board of Directors. Current myYearbook Board members, Rick Lewis, a Partner at myYearbook investor U.S. Venture Partners, and Terry Herndon, angel investor, will also join the Quepasa Board.
Key highlights of the combined business include:
1. Consolidated TTM Revenues and EBITDA of $33.6 million and $5.9 million, respectively, as of the twelve months ended March 31, 2011;
2. 4 billion monthly advertising impressions with 1 billion on mobile and 3 billion on the web as of June, 2011;
3. Total registered web users of 70.9 million, 2.2 million mobile installs (1.4 million on Android and 800 thousand on iPhone), 11.5 million mobile game installs, 2.1 million social game installs and monthly page views of 2.4 billion in June, 2011;
4. Dramatic mobile growth from 2% of daily myYearbook users logging in on a mobile device in January, 2010 to 40% of daily users logging in on a mobile device in June, 2011;
5. Successful mobile platform to be leveraged across Latin America, the United States, and other geographies;
6. Experienced social media team of 200+ people with 100+ engineers/product and 23 in Sales group;
7. Quepasa Games' social game IP creates vertically integrated, high-margin social gaming revenue stream for myYearbook;
8. Vibrant virtual currency which accounts for one-quarter of myYearbook revenue;
9. Highly complementary mix of cross-platform advertising products, including Quepasa Social Contests and myYearbook Social Theater