Surfstitch completed a deal over the last week which sees it purchase a business called Magicseaweed along with none-other-than Sydney based surf mag, Stab. All up the acquisitions cost the company AU$13.8 million plus 4.8 million shares but no split was gives on who got what from the deal.
In the detail it turns out that the acquisitions will add an audience of 2.75 million for Surfstitch to market to with 750K of that coming from the Stab platforms. That’s actually an insanely great number for an Australian based surf website. Pop, at its peak around the Vancouver Olympics, was generating 100k per month (we’re a long, long way off that now… but that’s another story).
It is expected that both businesses will add to the revenue for FY16 – so they’re not loss leaders for the guys.
Check the full announcement over here.