MeetMe Inc (NASDAQ: MEET)
MeetMe is having an incredibly strong day in the market today. After starting the day off well in the green, the stock has seen its share of ups and downs thus far today. Nonetheless, it looks like it will close on strong gains. Below, we’ll talk about what we’re seeing from MEET, why, and what we’ll be watching for ahead.
What We’re Seeing From MEET
As mentioned above, MEET is having an overwhelmingly strong day in the market today. Following strong after-hours gains, the stock was already trading on impressive profits at the open. Since then, we’ve seen movement in both directions, but the stock is clearly sticking around in the green. Currently (9:58), MEET is trading at $5.97 per share after a gain of $0.90 per share or 17.83% thus far today.
Why The Stock Is Headed Upward
As is nearly always the case, our partners at Trade Ideas were the first to inform us of the gains on MEET. As soon as we received the alert, the CNA Finance team started digging to see why the stock was making a run for the top. It didn’t take long to dig up the story. Ultimately, the gains appear to be the result of acquisition news that broke yesterday.
Yesterday, MeetMe announced that it has executed a definitive agreement to acquire If(we), Inc. If(we) is a social and mobile technology company that MEET will be coughing up $60 million in cash for. The company says that the acquisition aligns well with the strategy to innovate, acquire and build the largest mobile portfolio of brands for meeting people. In a statement, Geoff Cook, CEO at MEET had the following to offer…
“We believe this combination provides a clear pathway to $150 million in annualized revenue with adjusted EBITDA of $50 million for our combined company. We are very excited to add if(we) and its flagship brands Tagged and hi5 to our portfolio of mobile apps for meeting and chatting with new people. If(we) brings a sizable global community, with strength in the US, to our portfolio. Their mobile apps are experiencing significant revenue growth and we expect that to accelerate in 2017 as we introduce our best practices around engagement and monetization. I am excited by the opportunity to work closely with if(we)’s talented team to accelerate growth and engagement across our portfolio of brands, which are aimed at meeting the universal need for human connection.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on MEET. In particular, we’ll be watching the company’s continued plans of innovation and acquisitions as well as their work with If(we) and the brands this acquisition brings to the table. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Pixabay]