Thursday, July 21, 2011

Quepasa Corp. (QPSA) to Merge with myYearbook with Intention to become Public Market Leader

Social media technology company Quepasa Corp., owner of Quepasa Games and Latino social network Quepasa.com, today announced its merger with Insider Guides Inc., DBA myYearbook, for $100 million.

myYearbook is an online venue accessible on the Web or mobile device. Quepasa CEO John Abbott detailed the contributions myYearbook brings to the table, and the company’s expectations for future advances.

“With this merger, we intend to create nothing less than the public market leader in social discovery,” Abbott stated in the press release. “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. … 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.”

In 2010, myYearbook generated $23.7 million in revenue, up 53 percent year-over-year, and a 315 percent increase in EBITDA at $4.9 million.

Geoff Cook, CEO of myYearbook, noted the Internet’s global appeal and how the companies will integrate their resources to maximize their online reach.

“Meeting new people is now — and has always been — one of the Internet’s core activities. This combination creates the scale needed to build the No. 1 player in social discovery. What excites me most about this opportunity is applying myYearbook’s platform for monetization and engagement to Quepasa’s fast-growing markets while also doubling the size of our development team to execute against an aggressive product pipeline focused on social, mobile, and virtual currency,” Cook stated.

The combined company anticipates consolidated TTM revenues and EBITDA of $33.6 million and $5.9 million, respectively, as of the 12 months ended March 31, 2011.

For more information visit www.Quepasa.com or www.myyearbook.com

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