Acquisitions

In a not too surprising move IAC announced last Friday that it has acquired the free dating site DateHookup.com. No financial terms of the agreement have been disclosed. IAC already owns such popular dating sites as Match.com, Chemistry.com and OkCupid. Datehookup.com was founded by Dustin Weirich in 2002 and has grown over the years to become the 6th most visited dating site on the internet. Every month DateHookup.com receives over 1 million unique visitors.

Over the past few years IAC has acquired a number of dating sites. Here are their most recent purchases:

• 2011 – OkCupid for $50 million (see Story)
• 2010 – Singlesnet (see Story)
• 2009 – People Media for $80 million (see Story)

Every year since 2009 IAC has bought a dating site. If the pattern holds true I wonder who they plan to purchase in 2013? I heard rumors a while ago that they may be interested in Cupid PLC since they are performing well in the European market. I have my doubts it will happen though, since Cupid PLC does operate some adult oriented dating services.

For more on the story you can read the IAC press release. To find out more about the dating sites involved you can read our Match.com review and DateHookup.com review.

I was surprised this morning when I read that Perfectmatch.com has been acquired by FriendFinder Networks (FFN). I am sure there have been others but this is the first dating site that I know of that FriendFinder Networks (or Various) has purchased. The only thing in the press release mentioned about the terms of the deal is that:

... founder Duane Dahl will join FriendFinder Networks as General Manager of the Company's general audience dating websites group ...

Having Duane Dahl join the FriendFinder ranks is a good move on FFN's part. In the past Perfectmatch.com is one of the few dating sites that has been able to get their dating service featured in movies from Sony Pictures, Warner Bros. and NBC Universal. The dating site also has been a part of the "Dr. Phil Show" and "Dancing with the Stars".

For more on the story read the press release. To find out about the dating service FriendFinder acquired you can check out our Perfectmatch.com review.

The owners of Match.com, IAC announced plans on May 30, 2011 to buy all outstanding shares of Meetic for 15 euros a share. IAC currently owns 27 percent of Meetic already through a deal where the sold their European business to Meetic in early 2009 (see Story).

Meetic is valued at 347 million euros which works out to about $497 million in USD. The share offer by IAC is about 12 percent higher than the closing price last Friday. Since then trading has been suspended at Meetic's request.

Meetic's co-founder Marc Simoncini has entered into an agreement with IAC to sell about 3.7 million shares which works out to about 7% of the total outstanding shares. He also still plans to remain on Meetic's board of directors.

To find out about IAC's most popular dating site you can read our Match.com review.

I was surprised today to find out that Match.com announced that they have acquired the free dating site OKCupid. The purchase price is $50 million plus potential future payments which depends upon performance in the coming year of the dating site. OKCupid makes most of its revenue through displaying online advertising. Their secondary revenue generating tool is a paid upgrade membership option. The CEO and co-founder of OkCupid, Sam Yagan will continue to run the business and oversee all day-to-day operations.

OKCupid membership base has seen a large increased over the last 18 months. Their members tend to be younger adults which is a market Match.com is looking to develop.

This time last year Match.com purchased Singlesnet.com for an undisclosed amount. (see Story) and in the summer, the year before, they had acquired People Media for $80 million (see Story). I wonder who they will buy next year? 😊

For more on the story you can read the press release. To find out more about these two dating sites, please read our Match.com review and our OKCupid.com review.

eLove is quickly growing into a large matchmaking service with 50 offices located across the United States. The have recently acquired Cupid's Coach which is a matchmaking company based in Los Angeles. This acquisition will add two new locations to eLove, one in Los Angles and one in Westlake Village.

Julie Ferman will still stay on at Cupid's Coach as the principle matchmaker. She has more than 20 years experience in the industry and has been responsible for over 1100 marriages. She also has been on national TV and was recently awarded "Matchmaker of the Year Award" at iDate.

To find other similar services, check out our Matchmaking Services category.

FriendFinder Networks Inc. made an offer on Thursday to buy Playboy Enterprises, Inc for $210 million. The founder of Playboy Magazine, Mr. Hefner, owns about 70 percent of Class A commons stock and 28 percent of Class B giving him complete voting control. The CEO of FriendFinder Networks, Marc Bell, stated that:

We look forward to Mr. Hefner and other key members of management being an integral part of the combined companies.

The problem with the offer is that last week Mr. Hefner made his own bid to take Playboy private at $185 million (or $5.50 a share). Playboy (PLA) is currently trading at around $5.65 on the New York Stock Exchange.

For more on the story read Stock Markets Review.