Paltalk, Inc. Announces Acquisition of Visicom’s ManyCam Assets
June 09 2022 - 4:00PM
via NewMediaWire – Paltalk, Inc. (“Paltalk,” the “Company,” “we,”
“our” or “us”) (Nasdaq: PALT), a leading communications software
innovator that powers multimedia social applications, today
announced that it has acquired the core assets of ManyCam from
Visicom Media Inc. (“Visicom”). ManyCam is a live streaming
software and virtual camera that allows users to deliver
professional live videos on any streaming platform, video
conferencing app or distance learning tool.
Jason Katz, Chairman and CEO of Paltalk, commented, “I have been
impressed with the ManyCam software for many years. We
believe that ManyCam is not only a perfect fit for our existing
video chat communities, but also a great addition to other video
conferencing applications like Zoom or Google Meet. ManyCam gives
users the ability to have multiple camera feeds, backgrounds and
effects while also enabling users to share presentations,
spreadsheets, documents and much more. We believe the integration
of the ManyCam software into our current application offerings has
the potential to generate positive cash flow in the near term and
contribute to positive EBITDA over the long term. ManyCam is a
logical extension for the Paltalk and Camfrog customer base, and we
believe it is an application that our existing users will be
willing to pay for.”
Transaction Summary
Paltalk acquired certain assets from Visicom related to the
ManyCam software, including, among others, all assets related to,
or used by Visicom in connection with, the business of developing
and distributing virtual webcam driver software, including virtual
backgrounds and/or “masks” or other camera effects, whether
tangible or intangible, including, but not limited to, Visicom’s
ManyCam software and related source code, customer lists, customer
relationships and all associated customer information, contracts
with contractors and suppliers, brand names, trade secrets,
trademarks, trade names, designs, copyrights, websites, all URLs,
goodwill and intellectual property associated with each of the
foregoing. In addition, Paltalk has entered into transition
services agreements with certain employees or affiliates of Visicom
to facilitate the transfer of the assets from Visicom to
Paltalk.
The purchase price for the ManyCam assets was $2.7 million in
cash consideration, plus a potential earn-out payment of up to
$600,000 upon the achievement of certain performance thresholds
related to gross sales of ManyCam software over the six-month
period following the closing of the acquisition.
ABOUT VISICOM MEDIA INC.
Visicom Media Inc. is a developer focused on developing
innovative tools, software applications, and solutions that enhance
user experience and empower brands while increasing revenue
opportunities.
ABOUT PALTALK, INC. (Nasdaq: PALT)
Paltalk, Inc. is a communications software innovator that powers
multimedia social applications. Our product portfolio includes
Paltalk and Camfrog, which together host one of the world’s largest
collections of video-based communities. Our other products include
Tinychat and Vumber. The Company has an over 20-year history of
technology innovation and holds 14 patents. For more information,
please visit: http://www.paltalk.com.
To be added to our news distribution list, please visit:
http://www.paltalk.com/investor-alerts/.
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking statements." Such
statements may be preceded by the words "intends," "may," "will,"
"plans," "expects," "anticipates," "projects," "predicts,"
"estimates," "aims," "believes," "hopes," "potential," or similar
words. Forward-looking statements are not guarantees of
future performance, are based on certain assumptions and are
subject to various known and unknown risks and uncertainties, many
of which are beyond the Company's control, and cannot be predicted
or quantified and consequently, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, without
limitation, the anticipated impact of the acquisition on our
business and future financial and operating results; the
willingness of new and existing users to pay for the ManyCam
software; the amount and timing of stock repurchases, if any, under
the Company’s stock repurchase plan and our ability to enhance
stockholder value through such plan; the Company’s ability to
retain the listing of its common stock on The Nasdaq Capital
Market; the impact of the COVID-19 pandemic on our results of
operations and our business; our ability to effectively market and
generate revenue from our applications; our ability to release new
applications or improve upon or add features to existing
applications on schedule or at all; risks and uncertainties related
to our increasing focus on the use of new and novel technologies to
enhance our applications, and our ability to timely complete
development of applications using new technologies; our ability to
effectively secure new software development and licensing
customers; our ability to protect our intellectual property
rights; the use of the internet and privacy and protection of
user data; risks related to our holdings of digital tokens,
including risks related to the volatility of the trading price of
digital tokens and our ability to convert digital tokens into fiat
currency; and our ability to manage our partnerships and strategic
alliances. More detailed information about the Company and the risk
factors that may affect the realization of forward-looking
statements is set forth in the Company's filings with the
Securities and Exchange Commission ("SEC"), including the Company's
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q. Investors and security holders are urged to read these
documents free of charge on the SEC's website at www.sec.gov.
All forward-looking statements speak only as of the date on
which they are made. The Company undertakes no obligation to update
any forward-looking statement or statements to reflect events or
circumstances after the date on which such statement was made,
except to the extent required by applicable securities laws.
Investor Contacts:IR@paltalk.com
ClearThinknyc@clearthink.capital917-658-7878
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