FriendFinder Networks this morning announced the acquisition of BDM Global Ventures, the company behind daily deals business JigoCity, for a combination of stock and warrants, in a deal worth up to $65 million.
JigoCity is a social commerce company that employs approximately 150 employees and powers daily deals in cities like Hong Kong and across countries like Singapore, Malaysia, Taiwan, China and South Korea but also Australia, Brazil and the United States.
JigoCity is said to have generated revenue of approximately $600,000 in July 2011, and approximately $1.1 million last month. Its user base is currently over 1 million members strong.
Following the acquisition, JigoCity will retain its brand identity. The company will also remain based in Los Angeles, California with its Asia headquarters in Shanghai, China.
Last June, FriendFinder, which bills itself as an social networking and video sharing technology company but is basically a porn and dating site network operator, reported a $3.7 million loss for the first quarter since its (not so hot) May IPO (which raised $50 million).
The company hopes JigoCity will benefit from its social networking platform, affiliate network and global reach, and FriendFinder posits that it could become an additional way for the company to monetize its foreign markets.