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Ralf Jurrien : August 16th 2007 - 13:55 CET

HandHeld entertainment to Acquire eBaum's

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Handheld EntertainmentHandHeld entertainment to Acquire eBaum's : HandHeld Entertainment, Inc., a global digital entertainment company, announced that it has entered into a definitive agreement to acquire eBaum's World, Inc., one of the Internet's premier online entertainment sites, offering user-generated videos, games, jokes, photos and other content. Founded in 1998, eBaum's World is one of the oldest and most successful user-generated content (UGC) sites in the world, generating approximately $5.2 million in revenue and $1.6 million in net income before income taxes in 2006. During the last 12 months, eBaum's World served more than 2.5 billion unique page views and video streams, with an average time on site per user visit of more than 10 minutes.
HandHeld entertainment to Acquire eBaum'sOnline entertainment site
As a pioneer of viral video, eBaum's World has helped shape the UGC market with its loyal following and growing community, becoming one of the world's largest independent online publishers of humor-related content. The company has relationships with such leading media companies as AOL Video, Facebook, FOX Mobile and others. "Acquiring eBaum's World demonstrates tremendous progress toward our stated goals of becoming a global leader in digital entertainment, as well as increasing our revenues and helping us become cash flow positive," said Jeff Oscodar, president and CEO of HandHeld Entertainment. "Their content is a perfect fit for the ZVUE network of humor-based Web sites, and we believe that their addition to our network will produce synergies with our other sites individually as well as great scale for our network overall. We also believe the continued growth in UGC sector ad spend and the integration of our growing library of commercial content into eBaumsWorld.com will increase our revenue and user enjoyment. We expect this acquisition to significantly enhance the company's ability to generate meaningful, long-term cash flows."

Online video & User generated content
"Through its agreement to acquire eBaum's World, HandHeld Entertainment has catapulted itself onto the world stage in a big way," said Michael Inouye, research analyst with In-Stat. "HandHeld has instantly become one of the leaders in online video and user-generated content and is now rubbing shoulders with YouTube and the video networks of such companies as Yahoo!, Microsoft, AOL and Google. This truly is a terrain-changing event in the UGC and online video markets." With this acquisition, the ZVUE Network of Web sites will become one of the world's leading providers of online video entertainment, attracting 14 million to 19 million unique visitors per month. Post-acquisition, HandHeld expects to deliver nearly than 3.5 billion page views and video streams through the ZVUE Network annually.

Online entertainment - HandHeld entertainment to Acquire eBaum's
"The opportunity to become part of HandHeld's ZVUE Network is very compelling to me personally because of the complementary organizational fit and similar long-term direction," said Eric Bauman, founder of eBaum's World. "eBaum's World brings with it strong brand recognition, with a loyal user-base that will integrate well with HandHeld's other online assets and help increase traffic across all its sites. There are also several technology-driven synergies that we expect to be able to realize across the different Web sites. I'm very proud to bring eBaum's World into the ZVUE Network and look forward to many years of combined success and believe that we can reach higher goals together than either company could have achieved alone."

eBaum's World
Launched in 1998 and headquartered in Rochester, N.Y., eBaum's World is one of the Internet's premier entertainment sites and offers content including videos, games, jokes, photos and more.

HandHeld Entertainment
HandHeld Entertainment is a global digital entertainment company. Its ZVUE Network of Web sites (Putfile, Holylemon, UnOriginal, YourDailyMedia, Dorks, FunMansion and ZVUE) now houses more than 850,000 user-generated and commercial videos available for purchase or free viewing, as well as millions of free user-submitted photos and other media, and is expected to deliver nearly one billion page views/video streams in 2007. Its ZVUE personal media players are mass-market priced and currently available for purchase online and in more than 2,200 Wal-Mart stores throughout the US.

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