Well: it is now a done deal as reported by GigaOm and Andy over at StockPhotoTalk. Fotolog has always been (in my eyes) the original social photo sharing site. It was there before flickr and certainly before the Facebook maddness!
The terms of the transaction are valued at approximately $90 million, net of transaction expenses. Consideration anticipated to be paid to Fotolog shareholders would consist of Hi-Media stock (approximately 77% of total consideration) and cash (approximately 23% of total consideration), giving eligible Fotolog shareholders 7,414,852 newly-issued shares of Hi-Media (anticipated to represent approximately 19% of Hi-Media’s issued and outstanding share capital upon completion of the acquisition). BV Capital and 3i Venture Capital, Fotolog’s largest shareholders, have elected to receive the majority of their consideration in the form of Hi-Media stock and expect to participate in the development of the combined company into a major pan-European online media and services group.
Fotolog celebrated its 5 year birthday a few months back with some outstanding statistics and is laying down the foundation of what is Next for fotolog past the Hi-Media acquisition; from the fotolog press release:
- The opportunity to bring together Fotolog’s rapidly growing audience of more than 10 million members, 15 million visitors – and its top 20 ranking among the world’s most trafficked websites – with Hi-Media’s huge ad-network and great optimization capabilities
- The tools for Fotolog to extend its platform and community services with one of Europe’s largest micro-payment networks · The jump-start Fotolog brings to Hi-Media’s Publishing Group
- The strong geographic fit, combining Fotolog’s growing strength in European markets like Spain and Italy with the reach Hi-Media will give Fotolog in rich and valuable Internet markets such as France,Germany and Sweden. · The outstanding opportunity the Fotolog team and investors will have to participate in the growth of the combined company.