|By Business Wire||
|May 5, 2014 09:07 AM EDT||
Vertical interest social media network, CrowdGather, Inc. (OTCQB:CRWG), today announced that it has entered into a definitive merger agreement with privately held, Plaor and Plaor Acquisition Corp, CrowdGather’s wholly-owned subsidiary. Upon closing of the merger, the outstanding shares of Plaor will be converted into 55,075,800 shares of common stock of CrowdGather. The merger is anticipated to close before May 15th, 2014, and is subject to various closing conditions, including a condition that Plaor deliver audited financial statements prior to closing. Additional financial disclosures including a pro-forma income statement and balance sheet for the combined companies will be made available after closing. Plaor will also nominate one person to be appointed to CrowdGather’s board of directors. After the completion of the merger, CrowdGather will have a total of 116,733,508 shares outstanding and initial, unaudited pro-forma revenues of approximately $2 million on an annualized basis.
Additionally, CrowdGather has made recent disclosures that it is in the process of divesting certain assets, namely the Company’s owned and operated forums for combined gross proceeds of approximately $1.9 million in cash. Funds from the anticipated sales will provide working capital for the combined companies post-merger. CrowdGather will retain its hosted forum assets approximating almost 93 million monthly page-views and almost 10 million monthly unique visitors.
The social gaming industry is expected to grow at a compound annual growth rate (CAGR) of 16.1% to reach $17.4 billion by 2019, according to Transparency Market Research, driven by increasing demand for smartphones and tablet PCs. Innovations in the provision of virtual goods helped generate approximately 60% of the revenue in the industry by 2012, followed by advertising revenues from more traditional venues.
“Our expectation is that we will emerge from this merger as a stronger and faster growing business,” said CrowdGather’s Chairman and CEO, Sanjay Sabnani. “By divesting ourselves from our owned and operated forums we intend to free up resources and procure working capital while still maintaining nearly 80% of our monthly traffic and users. Our vision is to create an exciting, high growth company that will leverage our traffic, users, and social media reach to provide Plaor’s titles with immediate access to hundreds of thousands of potential players for their games through the integration of a gaming center on all of our sites. We believe that access to our user base is potentially a tremendous competitive advantage for Plaor’s titles and will improve the forum experience for our users where they will be able to play Plaor’s games against the forum community. Putting our games in front of our network will provide us with valuable feedback while generating early momentum for the titles we launch.
Sabnani continued, “I am excited to welcome our new Boston based employees to the family, and I especially look forward to working with Richard Corredera who will serve as Chief Operating Officer of CrowdGather. Our hope is that the combination of high margin, passive advertising income from CrowdGather’s network of hosted forum communities combined with Plaor’s gaming related revenue streams will result in a more rapid pathway to profitability for both companies. Ultimately, we intend to scale this model far beyond our existing offerings and grow through the addition of additional titles we develop or acquire. We believe that there is a tremendous opportunity to benefit smaller, independent game developers by acquiring their revenue positive titles in exchange for equity in our company.”
Mr. Corredera has nearly 18 years of experience in software engineering, systems design, and business development. Mr. Corredera has served as President and Chief Operating Officer of Plaor where manages the business operations of Plaor including business development, compliance, and accounting in addition to overseeing its strategic technology development. Prior to Plaor, Richard Co-Founded DoubleTap Games and held technical director positions at THQ’s Helixe development studio and Sony Online Entertainment.
“We are delighted to be part of the CrowdGather team,” stated CrowdGather’s newly appointed Chief Operating Officer, Richard Corredera. “Combining CrowdGather’s impressive portfolio of forums with our social game platform should allow us to expand and grow our game catalog in very exciting new ways. Our combined companies are in a unique position to bring innovative new social games and experiences to new audiences on a wide array of both desktop and mobile devices.”
Additional Information about the Transaction
The Company has filed with the Securities and Exchange Commission (the "SEC") a report on Form 8-K regarding the proposed transactions described in this announcement, which will include the Merger Agreement as an exhibit. All parties desiring details regarding the transactions contemplated by the Merger Agreement, including the merger, are urged to review these documents, which will be available at the SEC's website (http://www.sec.gov).
Plaor, a company that specializes in developing highly scalable multi-platform games, is located in the heart of Boston's fast growing Innovation District. Plaor produces Mega Fame Casino, an innovative and highly rated social casino available on iOS, Android & desktop. With over 20 employees, the Plaor team is a mix of rising-star newcomers and widely-recognized game development veterans from companies including Rockstar Games, Turbine, Harmonix, Irrational Games, Nanigans, Sony Online Entertainment, ThoughtWorks, THQ, and Caesars Interactive Entertainment.
About Mega Fame Casino
Mega Fame Casino is a high quality social casino available now on Facebook, iOS, and Android. Users can play more than a dozen unique slot themes, four types of Hold’em poker, video poker, along with the innovative MegaFame Blvd. Mega Fame Casino features more than 300 celebrities and offers weekly celebrity tournaments bringing truly unique star-studded experiences to social games. Based on Plaor’s unaudited financial statements and without the benefit of marketing and advertising resources CrowdGather will provide, Mega Fame Casino currently has more than 20,000 daily active users and generates approximately $1 million in annualized revenues.
About CrowdGather, Inc.
With its growing portfolio of special interest forums and enthusiast message board communities, CrowdGather (www.crowdgather.com) has created a centralized network to benefit forum members, forum owners, and forum advertisers. CrowdGather provides a highly interactive and informational social network for members, a management and revenue-sharing resource for third-party forum owners, and a largely untapped advertising network for marketers worldwide.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth and business strategy. Words such as “expects,”“will,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company’s business; general economic, industry and market sector conditions; the ability to generate increased revenues from the Company’s forums; the ability to obtain additional financing to implement the Company's long-term growth strategy; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends an...
Oct. 9, 2015 05:30 PM EDT
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
Oct. 9, 2015 05:30 PM EDT Reads: 296
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driv...
Oct. 9, 2015 05:15 PM EDT Reads: 112
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Oct. 9, 2015 04:45 PM EDT Reads: 201
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
Oct. 9, 2015 04:15 PM EDT Reads: 183
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Oct. 9, 2015 04:00 PM EDT Reads: 238
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Oct. 9, 2015 04:00 PM EDT Reads: 907
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Oct. 9, 2015 04:00 PM EDT Reads: 303
Chris Van Tuin, Chief Technologist for the Western US at Red Hat, has over 20 years of experience in IT and Software. Since joining Red Hat in 2005, he has been architecting solutions for strategic customers and partners with a focus on emerging technologies including IaaS, PaaS, and DevOps. He started his career at Intel in IT and Managed Hosting followed by leadership roles in services and sales engineering at Loudcloud and Linux startups.
Oct. 9, 2015 04:00 PM EDT Reads: 225
Electric power utilities face relentless pressure on their financial performance, and reducing distribution grid losses is one of the last untapped opportunities to meet their business goals. Combining IoT-enabled sensors and cloud-based data analytics, utilities now are able to find, quantify and reduce losses faster – and with a smaller IT footprint. Solutions exist using Internet-enabled sensors deployed temporarily at strategic locations within the distribution grid to measure actual line lo...
Oct. 9, 2015 03:49 PM EDT
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Oct. 9, 2015 03:45 PM EDT Reads: 506
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Oct. 9, 2015 03:45 PM EDT Reads: 141
As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ability. Many are unable to effectively engage and inspire, creating forward momentum in the direction of desired change. Renowned for its approach to leadership and emphasis on their people, organizations increasingly look to our military for insight into these challenges.
Oct. 9, 2015 03:15 PM EDT Reads: 156
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Oct. 9, 2015 03:00 PM EDT Reads: 207
DevOps is here to stay because it works. Most businesses using this methodology are already realizing a wide range of real, measurable benefits as a result of implementing DevOps, including the breakdown of inter-departmental silos, faster delivery of new features and more stable operating environments. To take advantage of the cloud’s improved speed and flexibility, development and operations teams need to work together more closely and productively. In his session at DevOps Summit, Prashanth...
Oct. 9, 2015 03:00 PM EDT