Telegraaf Media Group, publisher of Dutch newspaper de Telegraaf, is acquiring Amsterdam based social network Hyves.
The acquisition of Hyves is an important strategic step towards TMG’s stated aim of achieving a larger share of its profits from digital media. Hyves and TMG currently have a joint net monthly internet reach of over 8.5 million Dutch residents of 13 years and older. Furthermore, partnering with TMG’s print and radio brands willoffer new cross-media exploitation opportunities.
Hyves expects revenues of approximately €20 million in 2010 and has a workforce of around 140. Hyves management team will remain in place.
The Hyves acquisition is funded by TMG from its cash flows and is earnings per share enhancing. The acquisition is currently subject to advice from TMG’s Central Works Council.
The Netherlands, Amsterdam
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