The leading Russian mobile entertainment service provider Playfon is entering a mobile social networking business by buying-out Wappy.to, a mobile video and photo sharing community site. Some industry observers put a deal value at $5 million.
Wappy.to has 1 million unique monthly users. The service was created in Denmark in 1999 as a tool to build WAP sites. The users currently upload and share their own generated video and photo content as well as create groups and chat to each other.
Playfon said in its press release it would use Wappy.to to build the first mobile social network in Russia. The site currently generates money from revenue sharing agreements with mobile telecom operators, for example, from Telia SurfPort in Sweden.
Through its partnerships with mobile telecom operators, Playfon reaches over 400 million mobile telecom subscribers in Russia and its neighboring countries as well as in the UK, Germany, Sweden, and Baltics.