The Meet Group Announces Acquisition by ProSiebenSat.1 Media SE

Rumors began to swirl last December that German broadcaster ProSiebenSat.1 Media SE’s e-commerce arm, NuCom Group, had expressed preliminary interest in acquiring The Meet Group. It has now been announced that the companies have entered a definitive agreement to proceed with the acquisition. NuCom will pay $6.30 a share in the deal, putting an enterprise value on Meet Group of approximately $500 million.

Based in Pennsylvania, The Meet Group is a maker of mobile apps that focus on live streaming broadcasts and text-based conversations, including MeetMe, Skout,  LOVOO, Tagged and Growlr. NuCom’s holdings include eHarmony, which it acquired in 2018, and the Germany-based dating platform Parship. The Meet Group’s dating brands will be combined with NuCom’s portfolio company Parship Group. The acquisition will help both companies diversify their revenue streams and broaden their combined international footprint.

“We are excited about this transaction and the significant benefits resulting from a combination with Parship Group,” said Geoff Cook, Chief Executive Officer of The Meet Group, in a statement. “This transaction will allow us to tap new strategic growth opportunities by leveraging our video platform and ProSiebenSat.1’s experience with content and entertainment. What’s more, with this transaction and the participation of both General Atlantic and ProSiebenSat.1, we will achieve a new level of financial scale and backing, which has the potential to further accelerate our growth.”

“The acquisition of The Meet Group... will significantly advance our ambition to create one of the leading global players in online dating and interactive live video,” added Tim Schiffers, CEO Parship Group.” We believe the combination of these two successful and complementary businesses will also create synergies within the ProSiebenSat.1 universe and accelerate the growth of our market share in the German live video apps sector.”

The transaction is expected to close in the second half of 2020, provided it is approved by The Meet Group’s stockholders. The Meet Group expects to hold a special meeting of its stockholders to vote on the transaction as soon as possible.

Just a month ago, rumours circulated that Match Group had offered itself to The Meet Group as a potential acquisition. Bloomberg reported that Match Group had concerns about its ability to function as an independent company following its split from IAC/InterActiveCorp. Representatives for Match Group and The Meet Group did not comment at the time and there have been no updates on the takeover rumor in light of the news of The Meet Group’s acquisition.