XBIZ – Aug 7 – FriendFinder Networks is dumping its JigoCity division and selling it back to its original owner for $1. FriendFinder last September acquired BDM Global Ventures, parent of JigoCity, in a stock deal that was worth about $4.3M when FriendFinder's stock price was more than double what it is today – 90c as traded on the Nasdaq today. JigoCity, which focuses on "daily deals," operates in such foreign markets as Australia, Brazil, China, Singapore and Taiwan. Recently, it was pulling out of the Hong Kong market. FriendFinder said it would be able to cancel 4.1M of 6.4M warrants with strike prices ranging from $7 to $18 a share issued during the acquisition.
Mark Brooks: I've seen multiple idating sites start daily deals sites and bail on them now. We just bailed on running Daily Deals Observer. The industry seems mired, and not that interesting really.
