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Kiwibox.com Completes Acquisition of KWICK!
May 18, 2012 (04:05 PM EDT)
NEW YORK, May 18, 2012 /PRNewswire/ -- KIWIBOX.COM, Inc. (OTC Bulletin Board: KIWB) – Kiwibox.com, a New York City based social network, announced that on May 18, 2012, it made the last payment of 1,600,000 Euros to the principals from whom it purchased KWICK!, the popular German social network community, paying a total purchase price of 6,400,000 Euros (approximately, $8,300,000 U.S.). This payment completes all of the conditions of the purchase and provides Kiwibox with absolute title to these valuable European assets, including the KWICK! Sensphere ASP platform and a trove of intellectual property assets.
Considering the KWICK! community's current 10,000,000 plus registered members and 1,000,000 active users, cited Andre Scholz, CEO of Kiwibox, "we anticipate a surge in memberships and unique visitors, especially on the tide of the Facebook public offering. KWICK! 's social network community," stated Mr. Scholz, "self-perpetuates its popularity among its membership with their constant sharing of ideas, events and friendships via cell phone, image pads and laptops. We see no barriers to expansion of the KWICK! social network throughout Germany's regional communities."
"We now have complete ownership of our European footprint and we expect to continue to acquire select and complementary social communities to integrate into our Kiwibox platform," concluded Andre Scholz.
Free to Users, Kwick! is one of the top social networks in Europe and is still growing. Kwick! revenues are generated primarily from online-advertising and by hosting special events. Kwick! offers an online, mobile and App-Version of its website. With its advanced technology, Kwick!'s website can accommodate up to 100,000 active users at the same run time. Kwick! employs 32 employees most of whom work at Kwick! headquarters in Weinstadt, near Stuttgart (Germany) and uses a network of over 150 volunteers to moderate its website. The Kwick! website attracts users from all walks of life, while the vast majority of its members are young adults.
About Kiwibox.com: Company History
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results, depending on a variety of factors, which include but are not limited to, statements regarding the company's potential acquisitions, its ability to obtain financing for these acquisitions, its ability to integrate any acquisition into its business and operations and manage such processes, and its ability to expand its membership, users and internet brand. The company's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: the after effects of the global economic downturn, changes in political, business and economic conditions, including any conditions that affect ecommerce growth; fluctuations in foreign currency exchange rates; the company's ability to deal with the increasingly competitive ecommerce environment, including competition for its targeted internet audiences, potential advertisers and, in general, from other social networks; the company's need and ability to manage other regulatory, tax and litigation risks as its services become offered in more jurisdictions and applicable laws become more restrictive; any changes the company may make to its market approach and offerings; the company's ability to upgrade and develop its systems, infrastructure and user-member service capabilities at reasonable cost; and the company's ability to maintain site stability and performance on its site while adding new products and features in a timely fashion. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.