British TV broadcaster ITV said today it had bought website operator Friends Reunited for an initial £120 million (€177 million) as it seeks to diversify beyond its core TV advertising business.
Friends Reunited, founded by Julie and Steve Pankhurst in 2000 and initially run out of their spare bedroom, includes the core website, which is devoted to bringing together long-lost acquaintances, as well as other services for genealogy and dating.
The acquisition, paid for by a mix of cash and newly issued notes and shares, comes as part of an Internet spending spree by media companies as they attempt to counteract sluggish ad sales in traditional areas such as television.
ITV aims to have at least half its revenues from outside its flagship ITV1 channel by 2012, including a sizeable contribution from mobile phones, online and other new media. ITV said it would pay an extra sum of up to £55 million in 2009 dependent on Friends Reunited's performance.