Tagged social network has acquired Hi5, doubling the number of active users to 20 million and reaching a total of 300 million registered accounts.Terms of the transaction were not disclosed, but clearly based acquisition includes Hi5 users of this social networking, says Wall Street Journal, quoted byTechCrunch.com.
By 2008, Hi5 represent one of the most important social networks, with MySpace and Facebook , but because the development of Facebook, Hi5 declined in recent 3 years. In its attempt to remain competitive in the market, game developers acquired Hi5 Big Six, whose platform has become an integral part of Hi5 network, social network but has not won too much in popularity.
At the same time, to Tagged developed, doubling its staff and buying later this year, Cat and Topicmarks Digsby. Although the U.S. user presence to Tagged is poor, only 30% of its users coming from here to enjoy the popular social network in South East Asia, America South, and in some European countries like Spain, Portugal and some East European countries like Romania. Hi5 network is a profitable acquisition because only 10% of users overlap, meaning virtually the rest of new users will be new users for Tagged. Through this transaction, Tagged aims that Hi5 will work independently, allowing users to enter through Tagged from Hi5 platform. Tagged has about 175 employees and will only pick up a few Hi5 employees.