Millennials Make Millions
Facebook Inc. founder Mark Zuckerberg soon may command a $100 billion company. But for three siblings from New Jersey, the sale of their social-networking company for $100 million in cash and stock is a reminder that life-changing payouts are possible for entrepreneurs below the lofty strata of Facebook, Groupon Inc. and other red-hot tech companies.
Catherine and David Cook started myYearbook.com in 2005 when they were 15 and 16 years old, respectively, as a way to connect with their new classmates at Montgomery High School in Skillman, N.J.
Big brother Geoff Cook, then 26 years old, bankrolled the start-up with $250,000 he had made from selling an online-resume business he built as a Harvard University student.
On Wednesday, Geoff Cook, now the 33-year-old chief executive of myYearbook, announced the sale of the company to Quepasa Corp., a social network aimed at Latinos.
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NNS/Times of Trenton /Landov
|Catherine Cook co-created the website, myYearbook, which has been generating more than 14 million page views per day.|
Together, Quepasa and myYearbook have more than 70 million registered users, less than a tenth of Facebook's 750 million active users. Quepasa and myYearbook say their combined revenue for the past 12 months was $33.6 million. Research firm EMarketer estimates that Facebook had ad revenue last year of $1.86 billion.
The Cooks started out trying to put print yearbooks out of business. During lunches with their classmates, Catherine and David Cook drummed up ideas for their new website, and then tapped the help of computer programmers in India.
In myYearbook's first full month as a national website, the company said it spread to 100,000 high school students. The same month, MySpace, then the dominant social-networking site at the time, made headlines by selling itself to News Corp. for $580 million. News Corp., which owns The Wall Street Journal, recently agreed to sell MySpace for a fraction of that sum.
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By 2008, myYearbook was among the 15 most popular websites in the country, based on comScore data on Web-page views for September of that year. MyYearbook had higher page-view tallies than ESPN.com or Amazon.com (NASDAQ: AMZN - News) .
Classmates.com, Friendster, Hi5.com and other buzzy social networks from the past decade are no longer hot. AOL Inc. (NYSE: AOL - News) , then part of Time Warner Inc. (NYSE: TWX - News), bought Bebo for $860 million in 2008. Last year, AOL unloaded Bebo at a $1.8 million pretax loss.Read more...