Just like Facebook’s bizaaro, Tagged and Hi5 were launched back in 2004 to help people meet new people instead of connecting with the ones they already know. This was done with help from some social games, and paid dating features. The platforms rather being unknown, did well for themselves in financial terms. Hi5 got acquired by Tagged in 2011 before it turned into a standalone social app development and remanded it to If(we).
Since then, Tagged’s new apps did do as well as expected and now the company decided to sell it for $60 million in cash to another social discovery app, MeetMe, which went public in 2014, and now Hi5 and Tagged will remain to be two distinct brands.
This collaboration means that MeetMe will now have 10.6 million total monthly users in the U.S.The markets also are working in favor of the new deal, as the share prices went up 19 percent in after-hour trading to $6.
“We believe this combination provides a clear pathway to $150 million in annualized revenue with adjusted EBITDA of $50 million for our combined company,” said Geoff Cook, CEO of MeetMe.