The global digital entertainment company HandHeld Entertainment, Inc., has acquired eBaum’s World, Inc., which is one of the most popular web entertainment sites. eBaum’s World, which was founded in 1998, is on of the most oldest yet popular sites all across the globe. The website generates almost $5.2 millions in revenue and $1.6 million in net income before 2006. eBaum’s World which offered user-generated videos, games, jokes, pictures and anything and everything that could be called entertainment has a recordable average time per user visit of more than 10 minutes. The company through success has developed relationships with leading online media companies as AOL Video, Facebook, FOX Mobile etc.
Thus, the deal wasn’t easy for HandHeld. HandHeld will be paying $17.5 million for eBaum’s World at closing, which includes $15.0 million as cash and $5.0 million in common stock, that would be subjected to a $2.5 million one-year hold-back. The hold back amount will depend on the achievement of certain financial targets. Thus, even if HandHeld has acquired eBaum’s world, no doubt, it is eBaum that has ruled over the former.
Source: 901am
