LimeLife has acquired San Mateo, Calif.-based Tapatap, and will integrate the company's core technologies, including user-generated contests and micropayments, into its women-oriented PC and mobile sites. Menlo Park, Calif.-based LimeLife is expected to announce the acquisition tomorrow, but our sister site, mocoNews learned of it early. Both companies declined to comment on the terms of the deal, but Tapatap said LimeLife will not hire any of its seven employees and that it has already shutdown its consumer-facing site. Tapatap, which was founded in 2007 and had raised $2.5 million from Gabriel Venture Partners, had developed a mobile gaming and community site, where millions of users were encouraged to vote on photos uploaded by the community for a chance to win a prize. Isaac Babbs, Tapatap's CEO, explained the company was looking to raise more capital, but the economy dampened any prospects. "We had a great system, but we were in the wrong place at the wrong time and were looking for the best alternative, and that was to partner with the right company, which was LimeLife." He said investors were not interested in how much the company was growing, but rather how soon it would be until it broke even. "Everyone has gotten really conservative."
Kristin McDonnell, LimeLife's CEO, said Tapatap's technology will be integrated into LimeLife's web site, mobile sites and iPhone apps, over the next several months. Consumers will notice an increase in community features, such as contests, and the ability to earn points, or buy tokens, which will give them access to premium content or the ability to differentiate their profile. Today, the community is mostly limited to creating wishlists and uploading photos from your phone or the web to contribute to your wishlist. McDonnell: "We are very excited about it. It's going to be one of our primary areas of focus over the next six to 12 months." As for how LimeLife will make money, she said it will focus on subscriptions and purchases, while mobile advertising is still in the early stages. "It's only a matter of time until brands, advertisers and retailers recognize the power of the relationship between the female consumer and her phone, especially, between her mobile phone and shopping." Release.
By Tricia Duryee