French company Hi-Media Group has acquired New York-based social network Fotolog for $90 million. Hi-Media CEO Cyril Zimmermann said, "[W]e believe that the expertise and experience of the Fotolog teams who are joining us will allow us to reinforce and accelerate the development of our publishing division." The site, launched in 2002 by Adam Seifer and Scott Heiferman (pictured right), allows users to communicate their life experiences to one another via photo updates. To those shocked by the high acquisition price, take a look at Fotolog's numbers before poo-pooing the deal.
-10 million member accounts
-15 million unique monthly visitors
-3.3 billion monthly page views
-20th on Alexa's list of the world's most-trafficked websites
-$2.3 million projected revenue for fiscal year 2007
Fotolog CEO John Borthwick said, "This will be one of the biggest publicly-traded Internet pure plays in Europe." According to statements from representatives of both companies, the new arrangement will capitalize on Hi-Media's ad network to generate revenue. Seifer, who will remain with the company, has assured users that the site will remain free.
