Momentous Entertainment Group Inc (OTCMKTS:MMEG) a diversified media firm with a focus on technology that produces, creates and distributes quality content on different media platforms, reported that it has finalized a binding Letter of Intent to buy Poolworks Germany Ltd, one of the largest social media firms in Europe with its social networks meinVZ and studiVZ, for preferred stock worth $10 million. The deal is projected to close by this year’s end.
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Kurt Neubauer, the CEO of Momentous, said that it is a notable acquisition that enables them to target the German speaking industry with their expanding entertainment content library. Additionally, they are committed to reintroducing the mobile and web platforms to increase user retention and engagement, expand the video features and increase capabilities to target younger audience.
Mr. Neubauer added that considering Microsoft’s projected purchase of LinkedIn valued at $247 per user while Facebook’s valuation of $200 a use; purchasing Poolworks for $1 a user pays for the opportunity for considerable growth. The Poolworks deal will bring the required asset value to Momentous to start to consider the mechanism of a probable uplisting to the NYSE or the NASDAQ Exchange.
The studiVZ platform was established in 2005 in Berlin and obtained investment capital from Lukasz Gadowski, the Samwer brothers and Georg von Holtzbrinck Publishing Group. It was bought by ‘Georg von Holtzbrinck Publishing Group’ in 2007 and then by financiers Adam Levin and Michael Pope in 2012. Today, meinVZ and studiVZ have over 10 million registered users and more than 45 million page impressions in a month, mainly in the German-speaking nations of Switzerland, Austria and Germany.
Michael Pope, the COO at Poolworks, said that they are delighted that meinVZ and studiVZ will get a new home with the Momentous, who will offer the required resources to grow and enhance the platforms. Though the German social media scope is competitive, the company has a benefit with its ability to quickly source, produce and deliver engaging content. Also, Momentous’ executive team has been dedicated to maintain a complete focus on information security for its customers.