iTurf Inc. To Acquire TheSpark.com
Acquisition Adds 2.2 Million User registrations And Nearly 1 Million Monthly Unique Visitors
Leading Teen Network Increases Reach By 40%
NEW YORK--(BUSINESS WIRE)--Feb. 7, 2000--iTurf Inc. (Nasdaq:TURF - news), the leading proprietary online teen network, today announced that it has signed a definitive agreement to acquire TheSpark.com.
TheSpark is an online provider of entertaining content, interactive features and academic resources designed specifically for students and young adults.
As a result of the acquisition, the iTurf network expects to add TheSpark's more than 2.2 million user registrations and, based on Media Metrix statistics since August of 1999, nearly 1 million additional monthly unique visitors. The acquisition increases iTurf's registration base to over 5.5 million and its reach to over 3%. Additionally, the increase in traffic boosts monthly unique visitors on the iTurf network to over 2 million. Since August 1999, TheSpark's monthly traffic, based on Media Metrix data, has consistently surpassed both Bolt.com and Alloy.com, iTurf's nearest competitors in the teen space.
Launched in March of 1999, TheSpark has successfully and quickly grown through its intelligent, irreverent content and viral marketing techniques. To date, visitors to TheSpark have taken over 14 million tests as part of the site's ''Test and Answer'' series. Through SparkNotes.com, TheSpark offers a series of study guides written by Harvard students and graduates covering over 125 of the most commonly read pieces of literature and philosophy. And, through Pimpin'Cupid, a matchmaking service, the Company has helped over 1.5 million friends make a more meaningful connection.
Stephen Kahn, president and chief executive officer of iTurf, stated, ''iTurf has steadily built its audience to critical mass through the development of proprietary content and integration of exceptional properties such as TheSpark. We are the leading proprietary network in the teen space and this acquisition advances iTurf's status as the most compelling gateway to the teen audience. Furthermore, TheSpark's 2.2 million user registrations represent a quantum increase in traffic at a remarkably low user acquisition cost.''
In less than a year, TheSpark has built a strong and loyal user base, characterized by exponential growth and extremely high membership retention rates. For example, the ''Death Test,'' a hilarious lifestyle survey that generates a prediction of life expectancy, has been taken over 4 million times since August of 1999. Additionally, TheSpark's popular newsletters have a subscription retention rate of 98.4% and generate exciting advertising sponsorship opportunities for the Company.
Sam Yagan, co-founder of TheSpark, stated, ''We are thrilled to be merging our sites into the iTurf network. iTurf's network approach is a critical differentiator among those targeting this diverse demographic. We believe our unique content and interactive features will integrate seamlessly with the iTurf network and complement perfectly the other iTurf community sites. We look forward to continuing on our successful trajectory and combining our respective strengths to propel iTurf to even greater success.''
Under the terms of the transaction, iTurf will issue 1.1 million shares of its Class A common stock to the selling shareholders of TheSpark in a tax-free exchange. In addition, the selling shareholders may receive additional consideration based on the performance of TheSpark over the next two years. iTurf expects the transaction to close later this month.
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