New York based Mio.tv, a community for latinos, has bought Wamba, a social network from Mallorca, Spain, funded by Danish angel investor Morten Lund, now famous for becoming bankrupt. The price published by Carlos Blanco, who is a friend of the seller, is 4-6 million euros, though another source puts it on 5 million euros. Morten Lund had invested 3 million euros for a 40% stake, which means that the price has fallen down.
Wamba is among the top social networks in Spain, but quite far away from the two leaders, Facebook and Tuenti. It grew a lot in June 2008, after it bought Vagos.es, a community for students, but its audiense was stagnant. It is supposed to have 8.4 million users.
These are the top social networks in Spain, according to Alexa:
1. Facebook
2. Tuenti
3. Wamba
4. Badoo
5. Hi5
6. MySpace
7. Sonico
Mr. Lund hasn’t even gotten his investment back!!!
From what I read the 3MM commited investment was subject to revenue goals that werent hit, so the final investment in to the company was 1,5MM€.
Way to go Morten!!!
Its Interesting one that one of the big channel bought social networking site.