Blog Post

IAC’s Match Agrees To Buy People Media For $80 Million

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Broad-based online dating site is buying into the targeted subscription dating business with the acquisition of People Media from private equity firm American Capital Ltd. and various investors for $80 million in cash. The deal will add 27 dating sites with a combined 255,000 paying subs to the IAC (NSDQ: IACI) unit, including,,,

People Media earned $11.6 million in 2008 before depreciation and amortization; by comparison, reported $9.9 million in operating income before amortization during Q109. (Update: For a better comparison, Match reported $91 million in operating income before amortization in 2008.) Fourteen-year-old had some 5.8 million unique users in May, compared with nearly 4 million for People Media’s combined sites, according to *comScore* Media Metrix. Both have a portal presence: powers MSN online dating in the U.S> and other countries; People Media does the same for AOL (NYSE: TWX) Personals communities.

You really can’t get more targeted than some of the sites operated by People Media —, for instance. CEO Greg Blatt explains in the announcement that the combined company will continue to look for ways to play off the interest some people have in dating by demographics. Despite the disparities in the two businesses, Blatt expects to share product development and online marketing expertise and to market “a broader array of services” to the combined customer base. On area that isn’t mentioned: international expansion, which would seem likely given’s presence across in 24 countries and its investment in European service Meetic.

IAC has plenty of cash left: IAC Chairman and CEO Barry Diller has said he’s willing to spend on the right properties. The $80 million cash payment for People Media barely makes a dent in the nearly $2 billion on hand. More than enough should he try to follow through on that interest in Yahoo Personals valued at about $500 million.

5 Responses to “IAC’s Match Agrees To Buy People Media For $80 Million”

  1. SibdizNaina

    A cool web site I found on the internet:

    I have discovered online dating to be a wonderful way to find people I would not have otherwise found. I have not been able to meet a lot of woman at my job because I am in a male dominated business, & I just do not work with females in my line of work. Bars and night clubs haven't worked out to well because they are loud places, and it's hard to compete in there. Not to mention the hangover the next day. A friend turned me on to internet dating, and I have found the selection to be much larger, and the singles to be better quality. Also I have used a ghost writing service to further increase my odds of meeting woman, and I have gone on 6 successful dates as a result. I think for busy men, there is nothing better than internet dating for today's busy society. Just my 2 cents…

    A useful dating web site: <a > online dating coach</a>

  2. D. Harrison

    Wow, they drop $80 m on an acquisition that aggregates targeted audiences, but wouldn't keep a targeted search as an incubated business for I would imagine was less than a $5m / year run. Odd times at IAC high.

  3. MichaelD

    80 million is the number. They have this supposed self imposed 100 million dollar cap for acquisitions. So when I see they went down for $80 million, I assume this is right in their sweet spot and they saw strong value here.

    It'll be interesting to watch the implementation execution.

  4. This is a great deal for both companies. After a few years of same-same, Match is making some smart moves lately.
    As for marketing lots of extra stuff to singles, history shows this works for the gay market, not straight.