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July 21, 2011

21 Year old myYearbook Founder Gets Richer by $100 Million

Quepasa, the Facebook for Latinos has merged with social networking company myYearbook for $100 million, approximately $82 million of hin Quepasa common stock and approximately $18 million in cash. 
myYearbook derives its revenue from three sources - advertising, virtual-currency sales and monthly subscriptions. Advertising makes up two-thirds of its revenue, with the other sources making up the rest.myYearbook is seeing over 1 billion page views on mobile platforms and 1.2 billion page views on the web each month. In fact, it is the top web site in the comScore Teens category with more visits, minutes, and pageviews

In 2010, myYearbook generated $23.7 million in revenue, up 53% year-over-year, and EBITDA of $4.9 million, up 315% year-over-year.

 Via BusinessInsider
In 2005, Catherine Cook and her brother David had an idea for a startup on social network.The high schoolers flipped through a yearbook and wanted to make a digital version.

The 15-and-16-year-olds got to work and created MyYearbook. In the 6-year span, the duo raised $17 million in financing, grew the site to 70 million users, and generated 1.2 billion monthly pageviews. This site was  launched in 2005 and saw 400 people from her school signup in the 1st week.Today has over 32million members, is growing by almost 20,000 people each day and does 30 million a year in revenue.

Today, a publicly-traded Latino social network, Quepasa, announced its $100 million acquisition of MyYearbook. The majority of the deal, $82 million, is Quepasa common stock. The other $18 million is cash.

Geoff Cook, MyYearbook's CEO and sibling of Catherine and David, wrote a letter to his 100+ employees:

"I don’t consider this an exit or the end. I consider it the end of the beginning, and I believe we have a lot more innovative products to create,"Welcome to retirement Catherine, Geoff and David! Although we're sure this won't be the last company they create.