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Paltalk Announces Acquisition of Visicom's ManyCam Assets For $2.7M

Paltalk, Inc. ("Paltalk," the "Company," "we," "our" or "us") (NASDAQ:PALT), a leading communications software innovator that powers multimedia social applications, today

Benzinga · 06/09/2022 16:01

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.

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