FriendFinder to buy social commerce website
BANGALORE (Reuters) - FriendFinder Networks Inc, the publisher of adult magazine Penthouse, said it will buy social commerce website JigoCity for up to $65 million in stock and warrants, to tap into fast-growing social networking markets like China and Asia-Pacific.
FriendFinder, which operates a string of social networking websites like adultfriendfinder.com and cams.com, said it will offer about 1.6 million common shares under the deal.
The deal would also include 6.4 million FriendFinder Networks warrants with exercise prices ranging from $5.00-$18.00 per share.
Owned by BDM Global Ventures Ltd, JigoCity provides daily deals in the lifestyle space.
Founded by American entrepreneurs, JigoCity operates in Australia, Brazil, China, Hong Kong, Singapore and Taiwan and plans to expand into two to four additional countries by year-end.
JigoCity had revenue of about $600,000 in July and about $1.1 million in August.
Shares of FriendFinder, which went public in May, have fallen 65 percent since then. They closed at $2.71 on Friday on Nasdaq.
(Reporting by Rachana Khanzode in Bangalore;)