On January 20, 2011, Match acquired OkCupid for $50.0 million in cash, plus potential additional consideration that is contingent upon OkCupid’s 2011 earnings performance. The amount of the additional contingent consideration ranges from $0 to $40.0 million.
http://ir.iac.com/secfiling.cfm?filingID=1047469-11-4675
So that works out to 100 times+ ebitda if the max earn out is earned?
Match.com also announced the acquistion of meetic for around $500M. Meetic’s ebitda is around $60M a year so that is a dramatically different.
The real reason Match bought okcupid is a couple minutes into this talk by the CEO.
http://ir.iac.com/eventDetail.cfm?EventID=97073
1. Badoo a free dating site supposidly is earning north of 140M now. They have no advertising costs so I assume their ebidta is higher than all of Match.com current properties combined. They currently plan to IPO for 2 Billion.
2. In the talk the Okcupid team signed a deal to stay on for a year and is focused building a badoo clone that will get profiles via facebook to compete in the space.
From the sounds of it Okcupid is going to have no more investment in it and left to die off like singlesnet.com, the focus seems to be to focus on dominating all these new forms of “online dating” such as mobile.
Badoo has grown 40% in the US dating market in the last 2 weeks, Match.com’s traffic has declined 30% in the last 30 days according to hitwise.
June 5, 2011 at 2:40 pm |
I always thought $50 sounded too low. The earnout makes more sense.
June 6, 2011 at 12:03 am |
[...] Okcupid Acquisition was 50 Million + 40 Million earn out. On January 20, 2011, Match acquired OkCupid for $50.0 million in cash, plus potential additional consideration that is [...] [...]
June 6, 2011 at 7:27 am |
On the planet where I come from – admittedly time travel is involved – companies were bought and sold on simple propositions:
1. Getting rid of a competitor is usually a good thing.
2. If the cost of buy is easily returned within 3 years. (longer is fantasy)
3. If the cost of duplicating the competition is twice the buyout figure.
4. If in real terms there was SOME “synergy”. (Own business not distracted, healthy profits and growth evidenced for last 4 years)
I do wish someone in this new continuum could explain where the reality is (outside the share manipulation).
What would you take as a buyout figure, Markus?
(It used to be 3years nett profits – TRUE!)
June 6, 2011 at 4:49 pm |
[...] sites, having started about 4 or 5 in the past 10 years (all unsuccessfully). Meanwhile, OKCupid, was acquired by IACI for up to $90 million. Nice [...]
June 12, 2011 at 4:26 am |
Markus, have to seen this?? how much money did you put into this??
July 8, 2011 at 10:15 pm |
So will they kill okcupid in the long-term?
July 20, 2011 at 10:53 pm |
[...] Plentyoffish blog says that a recent IAC investor call featuring Match CEO Greg Blatt mentions the Okcupid team signed a deal to stay on for a year and is focused building a Badoo clone that will get profiles via Facebook to compete in the space. Badoo. Sure its big but what a terrible service. Spam and junk all over the place. [...]
December 5, 2011 at 7:36 am |
The 49 man team in 1946 as the National Football Federation is a member to participate in the competition, and in 1950 joined by USA rugby union merged into NFL.Patrick Willis Jersey
In order to appreciate in 1849 in San Francisco in Eastern Nevada gold wave adventurer pioneer spirit, they decided to use” 49″ as the team name.
Today’s 49 and Dallas cowboys and Pittsburgh Steelers, won 5 super bowl champion. 49 teams were in the 1981 season ( Sixteenth ), the 1984 season ( Nineteenth ), the 1988 season ( twenty-third ), the 1989 season ( twenty-fourth ) and the 1994 season ( twenty-ninth ) on the Super Bowl trophy.
The current team is Denis di Bartolo, York ( Denise DeBartolo York ) has reached $568000000.
December 10, 2011 at 2:46 am |
Facebook Tricks…
[...]Okcupid Acquisition was 50 Million + 40 Million earn out. « Plenty of fish blog[...]…
January 12, 2012 at 10:14 am |
I always thought $50 sounded too low. The earnout makes more sense.