Blog Post

Latino Social Net Quepasa Buys myYearbook For $100 million

Teen-focused social net myYearbook is being bought by Quepasa, the Spanish and Portuguese community site and social gaming operator, for $100 million. While the first real challenge to Facebook’s social networking hegemony has recently come from Google+, myYearbook and Quepasa have attempted to carve respective niches within the community site sphere, suggesting that the space still has room for relatively smaller players.

The New Hope, PA-based myYearbook claims about 25 million users currently — a veritable drop in the bucket to Facebook’s 750 million members. In addition, Google+ said it reached 10 million users within its first two weeks in beta. But that’s beside the point, since myYearbook has no pretensions of wanting to be Facebook or Google+.

Where myYearbook and Quepasa have gone right, aside from aiming more narrowly than the successful Facebook or unsuccessful Myspace (which, in comparison to this deal, was sold by News Corp (NSDQ: NWS). for a mere $35 million to Specific Media) is that both companies have been able to slightly reposition themselves over the years and give their users something a little more than they can get on the main social nets.

Quepasa began evolving over three years ago when it went from a portal to a social network.

More recently, myYearbook, aware that its audience is more apt to be on their mobile phones than on the PC, shifted more and more into mobile gaming. The most notable effort it pursued in that strategy was to acquire five Android apps and a multiplayer engine FlockEngine. myYearbook claims it gets over 1 billion page views on mobile platforms and 1.2 billion page views on the web each month.

Quepasa’s purchase of myYearbook was made up of $82 million in the Latino social net’s common stock and approximately $18 million in cash. Release