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 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.

15 Responses to “Okcupid Acquisition was 50 Million + 40 Million earn out.”

  1. Steve Odom Says:

    I always thought $50 sounded too low. The earnout makes more sense.

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  3. Himagain Says:

    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!)

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  5. ben Says:

    Markus, have to seen this?? how much money did you put into this??

  6. Toby Says:

    So will they kill okcupid in the long-term?

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  10. Howiw Says:

    I always thought $50 sounded too low. The earnout makes more sense.

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