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Hi-Media, which is based in Europe, is an interactive agency. And, it has some cash to work with. That is, the company has announced that it has plunked down $90 million for Fotolog, a highly popular photo-sharing site.
Fotolog has more than 10 million member accounts across over 200 countries. There are roughly 3.3 billion monthly page views. What's impressive is that the growth has been primarily through viral methods.
Now, by being part of a digital agency, I think there are some opportunities for monetization. After all, Hi-Media has a strong ad network. Currently, Fotolog has a deal with Google Inc. (NASDAQ: GOOG).
What's more, Hi-Media also has a thriving micro-payments business. No doubt, this can be a way for Fotolog to sell premium offerings.
All in all, it seems like a pretty good deal. But, with a forecast of $2.3 million in revenues for 2007, the price tag is certainly frothy.
If you want to check out other M&A deals, click here.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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