platform, MeetMe, is acquiring if(we) formerly known as Tagged, the social connection and discovery platform for $60 million. Founded 2004 and backed by Mayfield if(we) is the operator for social media platforms Tagged and hi5. Tagged had purchased hi5 in 2011 and renamed the parent company to if(we) but both brands Tagged and hi5 remained independent entities, operating under one banner. MeetMe plans to implement its engagement and monetization best practices to innovate and build the largest mobile platform for social discovery in the US. Together MeetMe claims that its own platform, Skout, and if(we) will have a combined 10.6 million mobile monthly active users, 2.8 million daily users and 65.3 million chats per day. MeetMe, which was earlier known as myYearbook, states that in 2016 the if(we) reported revenues of approximately $44 million with 2.3 million monthly active users on its mobile app and 5.4 million in total. if(we) claims to have 10.4 million mobile app chats per day, 18,000 new registered mobile app users added each day, spanning over 100 countries in 15 languages. Business wise, the company claims that if(we) is expected to contribute at least $9 million of adjusted EBITDA(Earnings before interest, tax, depreciation and amortization) and be accretive to earnings in first 12 months, which, it states is in multiples of its previously acquired social platform Skout. The company also believes that there is only a 5% overlap when it comes to user base. It will lower technology costs over time by standardizing common features and products as well as consolidate Skout and if(we) offices in San Francisco. Meet me also states that the acquisition will let it annualize $150 million worth of business and $50 million of EBITDA of the combines company. Targeting a second quarter 2017 close, MeetMe states that the transaction is being made through cash on hand and cash from operations as well as other financing sources available including a newly signed $30 million loan with JP Morgan.
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