HomeMOKO Social Media Acquires Controlling Interest in Tagroom.com
MOKO Social Media Acquires Controlling Interest in Tagroom.com
Friday, October 24, 2014
MOKO Social Media Limited (NASDAQ: MOKO, ASX: MKB), a provider of highly tailored mobile social community platforms for organized groups, announced today that the company has acquired an 80 percent stake in the Australian-based news and entertainment website, Tagroom.com (http://tagroom.com).
The agreement is comprised of both cash and shares in MOKO; in addition, there will be an option-based incentive package, which will be issued upon agreed performance targets over a two-year timespan.
The consideration to be paid for the acquisition will not have a material impact on the financial position or issued capital of MOKO and at the request of the vendors, it has been agreed to keep the commercial terms of the deal confidential. Key personnel of Tagroom will also agree to a two-year employment and management contract with MOKO.
Tagroom is one of Australia's fastest growing online publishers and serves as a news and entertainment service that merges the use of social, mobile and graphic technologies, creating a native advertising platform for brands. Broadcasting trending content in pop-culture, Tagroom showcases viral news, product sightings, and appealing videos on the Internet.
Since its initial beta launch a year ago, Tagroom has generated over 5 million monthly page views and displays strong user engagement time, with an average user spending more than 11 minutes on the site daily.
The companies possess complementary advertising sales models of connecting brands and agencies aiming to engage with young audiences. Tagroom accomplished this with through its creative suite of native advertising offerings, and MOKO does so by targeting the 18-24 year-old audience through REC*IT, its college sports and fitness app in 850+colleges.
With this addition to MOKO's portfolio, the company will commence development of a native mobile app for Tagroom and utilize content across its portfolio of brands – heavily focusing on cross-promotion to its key college audience through the REC*IT product.
The acquisition of Tagroom also introduces three new members to MOKO. CEO of MOKO Ian Rodwell states, "Nirojan Yamunarajan,Patrick Varden and Yasmin Walter are going to be an amazing injection of talent, style and creativity and bring enormous insight into the world of viral media and shareable entertainment content for the important 18-30 year old age demographic."
"I'm very pleased and excited to have Tagroom.com as part of the MOKO portfolio of products, but even more excited to have Nirojan, Patrick and Yasmin join our development team."