An update on Infomedia18s acquisition of local listings and reviews business Burrp earlier this year, on March 25th 2009: according to a filing with the Securities & Exchange Board of India (SEBI), Infomedia18 had paid a total amount of Rs. 4.255 crores for acquiring Burrp. Previously, the amount paid was undisclosed. According to a TV18 filing, the consideration was allocated on the following basis:
Thanks to Deepak Shenoy for bringing this to our notice. Relevant extracts from filings:
From Infomedia18 Filings:
Extract 1: Business Transfer Agreement between our Company and burrp! Software Private Limited Our Company has entered into a business transfer agreement with burrp! Software Private Limited on March 25, 2009. Pursuant to the business transfer agreement, our Company has acquired the business of burrp! (which includes the contracts, employees, books and records, business assets, business properties, work in progress, current liabilities, current assets, business goodwill and intangible property rights) as a going concern. The sale was deemed effective as of March 15, 2009. Terms : Under the terms of the business transfer agreement, the parties have agreed that burrp! shall indemnify our Company for any losses, liabilities or damages incurred by our Company with respect to the burrp! business which related to the period prior to March 15, 2009. Our Company shall be responsible for all liabilities relating to the burrp! Business that arise after March 15, 2009.
Consideration: Our Company has paid Rs. 425.50 lakhs as consideration for the acquisition of burrp!
Extract 2: Significant developments after December 31, 2008 In March, 2009 our Company entered into a business transfer agreement with burrp!, pursuant to which our Company has agreed to acquire the burrp! for a total consideration of Rs. 425.50 lakhs. Further, our Company on March 27, 2009 has also availed a loan from one of its promoters, TV18, for an amount of Rs. 4,050 lakhs carrying an interest of 14% per annum, repayable on or before December 31, 2009.
From TV18 Filing: The Company has entered into a Business transfer Agreement with Burrp! Software Private Limited (“Burrp”) for acquiring the specified Business of Burrp as a going concern on a slump sale basis for a lump sum consideration of Rs. 42,550,000 from March 15, 2009.The said consideration has been allocated by the company on an estimated basis as under.
Related:
– Updated: Infomedia 18 To Acquire Burrp; Not A Related Party Transaction
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10 Comments until now.
hmmmmm….well that explains how the current C.E.O of burrp has bought a flat in Juhu !!!!
I actually don't think that's a good price. TV18 got it cheap.
Isn't this a pretty small price to pay? I thought the price was somewhere around $10 million dollars? Rs 4.25 crore is a little less than $1 million though. Do you have any data on the number of users or unique monthly visitors to the site?
Hm, well didn't Infomedia18 already own some portion of Burrp? I thought they were an investor.
It is VERY low – considering Burrp! had a good following in the restaurant review market. You're right – its probably got to do with I-18 already being an investor.
I however cannot understand this part of Extract 2 "Further, our Company on March 27, 2009 has also availed a loan from one of its promoters, TV18, for an amount of Rs. 4,050 lakhs carrying an interest of 14% per annum, repayable on or before December 31, 2009." – how is this Rs 40 Cr related to the Burrp! acquisition?
burrp gets 7500 uniques a day ….!! even after integrating as In.com ( my city )
250,000 a month at best….
The 4 cr payment is just perfect
but then what price do u pay for a company that does 3 lakhs in revenue a month …and had 15 lakhs as expenditure…
Unbelievable! such a kickass product, so much good work gone into it – but sold for 1/5th of what i had imagined. Sad day in the history of indian online media-portals business.
Now i understand why deap had written that article on his blog saying – india is not the right country to start an internet product, just yet.
i think the price is a trifle low, however, from what i have heard Net 18 was covering their expenses for sometime.. so keeping that in perspective i reckon the numbers paid out over the course is probably significantly higher.
i hope the burrp guys do well out of this because it truly was a high quality product. good luck to em.
Has burrp been integrated with in.com? I don't see that.
yes if u go to in.com and hit the mycity tab…it is basically burrp that powers that section . the aim was to get more traffic by integrating with in.com . but till date it gets the least traffic .the maximum traffic is generated by the LISTEn section on In.com
Last heard deap ubhi ( the ceo of burrp ) had approached Indiatimes to power their food / listing section as a last effort to gain some more traffic but was turned down by them since they are themselves launching Timescity.com