is today reporting that
ITV has managed to offload
friends reunited, a once popular social network site, for £25 million, 4 years after buying the site for £120 million plus performance-related bonuses (worth up to £55 million). The question is, why would
DC Thomson Publishing, home of such iconic magazines such as the Beano and Dandy comics, and Classic Stitches Magazine, want the company which has lost a majority of it's users to the likes of facebook?
When friends reunited started in 2000, there wasn't a UK alternative to the popular US website Classmates.com. Us Brits had no-way of finding out which of the pretty girls from school had gotten fat, or how many of the school bullies had ended up in prison. I signed up for an account pretty early on, but was astounded to find that it was a paid service, or rather, if you actually wanted to connect with a friend, you had to pay a yearly subscription. It was a pretty modest £7.50 or so but, as a student, there was far more important things to spend my money on. Like alcohol for example. It got old pretty quickly because, essentially all you could find out about the people you went to school with was if they were married, where they lived and what job they had. My account became neglected and eventually, when facebook was opened to people outside of universities, abandoned.
When I visited friendsreunited.co.uk recently, I didn't recognise it. Or rather I did, but only because it had become another facebook/myspace/twitter clone that had fewer members than the alternatives. And of those members, many had neglected their profiles.
So why buy the company? Well, prior to the original sale to ITV, friends reunited had branched out into genealogy and dating. These are far for lucrative businesses to DC Thompson, who's subsidiary Brightsolid runs a genealogy website. Also, friends reunited dating provides online dating for daily local and national newspapers in the UK.
The timing couldn't be better for ITV, who lost £1.6 billion last year and £105 million this year to June. Hopefully, the money saved/made from the sale will be ploughed into ITV.com where the number of views shot up almost 4-fold to 116 million and made £18 million.
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