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The women-focused media company sets its sights on the mom demographic
It’s hard to resist the addictive pull of Sugar—the women-focused media company, not the food stuff. With properties like PopSugar for celebrity gossip, LilSugar for all things mom-related, and GeekSugar for tech and gadget news, the brand has something for everyone. But the mom market is where it’s at. Sugar Inc. announced Tuesday that it has acquired the San Francisco-based social network Circle of Moms. The terms of the deal were not disclosed.
Launched on Facebook in 2008, Circle of Moms has grown to more than six million users and acquires 100,000 new users each week. Like fellow mom communities The Bump Network and Babycenter.com, Circle of Moms provides a mix of social networking and news and information. Users can connect with other moms via the site’s communities, participate in photo contests, and read up on the latest info on pregnancy, babies, and older kids (because the rules are always changing. Did you know it’s no longer acceptable to punish your child with hot sauce and a cold shower?).
Founded in 2006 by Lisa and Brian Sugar, Sugar Inc. boasts a pretty hefty following of its own. Its string of properties draws 28 million unique visitors each month, and Sugar Inc. has raised money from Sequoia Capital, Institutional Venture Partners, and NBC Universal. Last April, the company raised $15 million in a round led by IVP, bringing Sugar’s total raised to $46 million.
Today’s acquisition follows on Sugar’s other deals, which include FreshGuide in 2010—now PopSugar Shop—and ShopStyle in 2007, which has since become Sugar’s fashion search engine. While the company doesn’t disclose its earnings, it does say that it has been profitable for the last two years. Additionally, it generates some 50% of its revenues from its e-commerce channels.
"Acquiring Circle of Moms enables us to extend the reach of our existing mom audience, offer more valuable content, and strengthen our social community” said CEO Brian Sugar, in a statement.
Circle of Moms will continue to operate independently as a wholly owned subsidiary of Sugar Inc. The company’s CEO Ephraim Luft will continue to head the company and will report to Brian Sugar henceforth.
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Sugar Publishing focuses on creating communities for women and has 5 million monthly unique visitors and more than 50 million page views (source: company website.)
Building upon its flagship property, PopSugar.com, the company’s Sugar Network now comprises ten distinct lifestyle and entertainment sites, covering topics that include celebrity, fashion, entertainment, food, fitness and more.