Tagged has signed a deal to acquire the social network hi5. The company will look to combine usersbases, give them access to services through either site and perhaps work towards an IPO in 2012.
“At hi5 my colleagues and I recognized the unanswered opportunity to connect new people online,” said Alex St. John, CTO of hi5. “Tagged is the perfect home for hi5 as it continues to prove itself as a major contender in social.”
“The way you compete with Facebook is you become the leader in some other space,” said Tagged CEO Greg Tseng. “The downfall of MySpace (and others) was they kept trying to compete head on with Facebook and then pivoted too late. One strategy is for us to grow and dominate and take other social sites and pivot them. My focus is building a company that’s lasting and independent and sustainable.”
Source: Wall Street Journal
