FriendFinder Networks acquires BDM Global Ventures

FriendFinder Networks an internet and technology company providing services in the expanding markets of social networking and web-based video sharing, has acquired BDM Global Ventures Ltd., the company which owns the operations of JigoCity, for a combination of stock and warrants.  The merger consideration consists of approximately 1.6 million shares of FFN common stock and approximately 6.4 million FFN warrants with exercise prices ranging from $5.00-$18.00 per share.  Assuming the cashless exercise of all the warrants at the highest exercise price, the merger consideration will be approximately $65 million.

JigoCity is a global social commerce organisation providing daily deals. They have 150 employees and provide services in around 20 cities and offices in Australia, Hong Kong, Singapore, Malaysia, Taiwan, China,South Korea, Brazil and Los Angeles. The company has plans to expand into additional countries by year end. JigoCity generated revenue of approximately $600,000 in July and approximately $1.1 million in August and has grown its user base to over 1 million members.

JigoCity is led by an experienced management team including Founder and Chief Executive Officer Tony Bobulinski, Founder and Chief Marketing Officer Michael Dorman and Founder and Chief Strategy Officer Joshua Mallamud. Following the acquisition, JigoCity will retain its brand identity while benefiting from FriendFinder Networks’ website traffic and user base. JigoCity will remain based in Los Angeles, CA with its Asia Regional Headquarters in Shanghai, China.

Marc Bell, Chief Executive Officer of FriendFinder Networks Inc. said, “We are expanding into today’s rapidly growing social commerce environment and we are very excited about the new possibilities this acquisition presents. Not only are we acquiring a growing and successful social commerce company, we believe we are gaining an additional avenue to monetize our foreign markets. China and the Asia-Pacific region represent one of the fastest growing areas of the world in terms of economic growth, internet usage and middle and upper class consumers. In addition, we believe this acquisition demonstrates the innovative ways we continue to leverage our large user base and the web traffic generated by our network of websites.”

USA, Sunnyvale, CA, Los Angeles, CA & China, Shanghai

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