Fotolog Still Growing: Will That Satisfy New Owners?

Soon-to-be acquired Fotolog announces it is now at 11 million users, a 10% bump from a month ago. Last month Fotolog agreed to sell itself to French Hi-Media Group for $90 million in cash and stock. So why is it still trumpeting growth stats via press release? To assuage Hi-Media investors, who are being asked to sign off on a highly dilutive deal that valued Fotolog at 39x its projected 2007 revenue of $2.3 million. A shareholder meeting is scheduled for November; Hi-Media shares have dropped 7% since the deal was announced. Release excerpts after jump.

Related: Fotolog Sells to French Hi-Media Group For $90 Million.


World’s Leading Photo-Blogging Site, Soon to Be Acquired by France’s Hi-Media Group, Continues Extraordinary Momentum

Milestones Underscore Rapid Viral Growth, High Level of Usage and Member Engagement That Will Drive Monetization Within One of Europe’s Largest Publicly-Traded Internet “Pure Plays”

New York, September 19th –Fotolog™ today said that the world’s largest photo-blogging community and third most-trafficked social media network had reached the milestones of 11 million members and 300 million photos posted on its site.  The site also set new monthly records in August with more than 20 million uploads of posted photos and 3.5 billion page views, a daily record last week of 135 million page views and two consecutive daily records with 774,000 and 790,000 photo uploads.

The news, which follows closely on the heels of the Company’s announcement that it would be acquired by France’s Hi-Media Group, continues the site’s extraordinary momentum, including a doubling of its membership and the addition of more than 140 million photos since the beginning of the year, rises in usage and the launches of key alliances that have substantially upgraded its already compelling user experience.

Fotolog’s astounding growth – it has been adding approximately 30,000 members per day – has been achieved purely virally, with virtually no expenditures on marketing.  And the site, which ranks 19th on the Alexa list of the world’s most trafficked websites, has reached the 300 million photo milestone despite its unique rule of restricting postings to one a day, which improves the quality of postings and the likelihood that photos will be viewed and commented on.