Back in the Dark Ages of Social Networking (2008), the top three social networks were MySpace, Facebook, and hi5. Today, Facebook leads, Google has jumped into the game, News Corp sold MySpace for only $35 million, and Hi5 has been acquired by Tagged, a social discovery platform. The terms of the deal were not disclosed.
“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.”
hi5 tried to make itself into a social gaming company recently, with the 2010 launch of its SocioPath platform, but the move must have come too late. Tagged CEO Greg Tseng told the Wall Street Journal that he moved his company away from competing with Facebook at the right time.
“The way you compete with Facebook is you become the leader in some other space,” said 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.”
Tseng is hoping to combine hi5’s considerable userbases in Southeast Asia, South America, and Europe with Tagged current users. Consumers will be able to access all services through either site. Tseng would also consider an IPO for the company if he can double revenue in 2012.
“My focus is building a company that’s lasting and independent and sustainable,” he said.
