MeetMe completes acquisition of Skout
MeetMe announced that it has completed its acquisition of Skout, Inc., a global mobile network for meeting new people. MeetMe expects the acquisition, which closed on October 3, 2016, to significantly increase both the size of its user base and its total revenue, allowing for greater monetization, strong operating leverage and increased profitability. Skout's revenue for its third quarter ended September 30, 2016 is expected to be approximately $6.6 million and its trailing twelve months' revenue as of September 30, 2016 is expected to be approximately $26 million. In connection with the Skout acquisition, MeetMe granted stock options to purchase an aggregate of up to 355,000 shares of its common stock to 25 former Skout employees as an inducement material to becoming non-executive employees of MeetMe at the closing. Each option has a ten-year term, a three-year vesting period, subject to continued employment, and an exercise price of $6.12 per share, the closing price per share of MeetMe's common stock on the grant date. The grants were made under the Company's 2016 Inducement Omnibus Incentive Plan, which was adopted by the Board effective October 3, 2016 in accordance with NASDAQ Listing Rule 5635(c)(4). MeetMe has not finalized its financial statement review process for the third quarter of 2016.