Latino-targeting online entertainment and communication services provider Mio.tv has acquired Spanish social network Wamba for approximately €4 million euros with earn-outs according to various Spanish and Latin-American media.
Considering the fact that the startup had raised €3 million from early Skype investor and serial entrepreneur Morten Lund back in 2007, this isn’t exactly a home run for the Spanish company.
Nevertheless, this is good news for Lund, the colorful European web celebrity who TechCrunch UK earlier this year reported to be personally bankrupt after a series of investments gone awry. According to earlier reports, Lund retained 40% of Wamba shares in return for his investment.
Mio.tv aims to become the default bilingual online portal for the millions of latinos on the web, offering a slew of online video channels, gaming, social networks and communication services. The company’s Chairman and CEO, Manuel Garcia-Duran, told EuropaPress that Mio.tv is buying Wamba for its reach in the Latin-American community and cites 8.4 million registered users for the social network.
Apparently, no cash has been paid, as Dubois is stepping in in the Board of Mio.tv. It looks like he got shares. Not so sure about Lund, who needs the cash
No shares are involved, it is a 100% cash transaction.
congratulations to both parties
I think that http://www.Clasilistados.org would be a good acquisition. They’re the leading www for Spanish speakers in the USA
Robin, how in the world is this good news for Morten Lund if he invested 3 million for a 40% stake and the company was sold less than 2 years later for 4 million?
That means he got 1.6 million for his 40% stake so he lost almost 50% on his investment!
1. He might have had preferred stock
2. Liquidity is quite important for life’s little essentials like food, bills, schooling.
Thank you Andy. The Wamba founders told me some other stuff that indicate most if not all shareholders have a big smile on their face over this. But it’s still not a homerun
Its nowhere near a home run. It is not good news for shareholders. It is just “less bad” news.
We’re in the midst of the great gmail crash of 09 and this is all you can post about? Gmail is down! GMAIL IS DOWN!
Hi,
I think they have bought wamba for peanuts. A site whose alexa rank is 299 surely worth much more. What do you say?
wamba? makes no sense. the domain is worth peanuts.
MiRaza.com – live the dream
Try http://www.clasilistados.org
This is a win-win deal for both companies and their investors so i guess a bunch of people here don’t know the facts…but they sure do a lot of talking…
Wamba.com looks like a spanish perfspot. Check out the profile photos, lots of cartoons and crap. Indicates a v. young demographic.
Also, check out the Alexa chart, very uneven growth. Looks a little fishy. Definitely looks like a site that hasn’t settled in yet.
The problem with wamba – and I mean this from the persepctive of an investor, not a user, is that where is the revenue going to come from?? Hispanic CPM is notoriously low, and for a young demographic it will be even worse.
In the current crisis terminology – this is a “mark to market” price.
Congrats to Kike and the team! well done guys
Sounds like some juicy stuff in there. Double check your facts before you print!
Congratulations for both Parties! Wamba is one of the most succesfull social media sites in the latin space and Mio.TV will be able to market its own content to all that audience.
Also seems low price for my opinion, but in these times it is normal to see expectations reduced.
Well, MioTV has just gone bankrupt: http://www.elco...a-20091102.html
It sounds like this was not very real.