Quepasa

Quepasa was a United States social-media and internet-services company designed for Latino audiences in the United States, Mexico, Latin America, and other international markets. Its principal property, Quepasa.com, developed from a Hispanic-oriented web portal into a bilingual and bicultural social network offering communication, community, entertainment, and advertising features. The company also operated or developed adjacent properties including Corazones.com, Quepasa Games, and Quepasa Contests. The business was incorporated in 1997 as Internet Century Inc. and initially worked as a high-end web applications developer. It changed its corporate name to Quepasa.com, Inc. in December 1998 as it repositioned itself around a Hispanic internet portal. The company raised approximately $20 million from private investors in 1998, including Telemundo and Phoenix sports executive Jerry Colangelo. It subsequently became one of the earliest publicly traded internet companies focused specifically on the bilingual English- and Spanish-speaking U.S. Hispanic demographic. Quepasa completed its Nasdaq initial public offering on June 24, 1999. The offering occurred during the dot-com boom, when the company attracted substantial investor and media attention. Its marketing strategy relied heavily on Spanish-language outdoor advertising, radio, and television campaigns. In September 1999, singer and entrepreneur Gloria Estefan became a corporate spokesperson, partner, and investor, further connecting the brand with a prominent Latin American and U.S. Hispanic cultural figure. Market research cited in contemporary accounts ranked Quepasa as a leading online destination for U.S. Hispanics in 2000, although its expansion required significant promotional spending and placed it in competition with companies such as StarMedia and Terra. The company experienced serious management and financial difficulties after its public-market debut. Founder Jeffrey Peterson was removed from the chief executive role in 1999 by newly appointed management, which alleged that he had started a competing venture. During the 2001 dot-com collapse, Quepasa's market value deteriorated sharply. Peterson and co-founder Michael Silberman later challenged the company and its board through litigation, a proxy contest, and a hostile takeover effort. They regained control in 2002, after which Peterson returned as chairman and chief executive and Silberman held senior finance and corporate-secretary responsibilities for a period. The company then rebuilt its operations and relaunched its online community strategy. Quepasa introduced a social-networking site in 2005, allowing users to move between the portal and the social service. By the late 2000s and early 2010s, the company presented itself as a large Latino social network with more than 30 million users. It competed in an increasingly crowded market against Facebook, Hi5, Tagged, Sonico, and other regional and international services. Its commercial model included advertising products, branded campaigns, social-media promotions, and partnerships with media and technology companies. Quepasa expanded beyond social networking in 2011. It entered an advertising-reseller partnership with PRISA Digital, the digital arm of Spanish media group PRISA, and acquired XtFt Games, associated with the Brazil-based social-game studio TechFront. Following the acquisition, Quepasa launched Wonderful City - Rio, a social game distributed through Quepasa.com and Orkut.com in partnership with Mentez. In July 2011, Quepasa merged with the teen-focused social network myYearbook. The transaction shifted the company's operating emphasis toward a broader social-networking platform, while the Quepasa name remained connected to its Latino-oriented services. In 2012, the combined business was acquired in a transaction valued at $100 million and renamed MeetMe. Quepasa subsequently suspended operations as an independent company and ceased to exist as a standalone operating brand. Its historical importance rests on its early focus on bilingual Latino internet users, its status as an early publicly traded social-networking company, and its efforts to combine community services, advertising technology, and social games.

Quepasa began in 1997 as Internet Century Inc., a company involved in high-end web-application development. It was founded in Phoenix, Arizona, by Jeffrey Peterson and co-founded by Michael Silberman. In December 1998, the business adopted the Quepasa.com name and developed a Hispanic-oriented internet strategy. Its services targeted Latino audiences through English- and Spanish-language content, with later support for Portuguese-speaking users and communities in Mexico, Latin America, and other markets. In 1998, Quepasa raised approximately $20 million from private investors that included Telemundo and Phoenix sports executive Jerry Colangelo. The company went public on Nasdaq on June 24, 1999. The listing made Quepasa one of the earliest publicly traded internet businesses centered on the U.S. Hispanic demographic. During the late-1990s internet boom, the company invested heavily in Spanish-language billboards, radio, and national television advertising. Gloria Estefan became a spokesperson, partner, and investor in September 1999, giving the brand a strong cultural and entertainment association. The public-market period was accompanied by management conflict. In August 1999, chief executive Gary Trujillo removed founder Jeffrey Peterson, reportedly accusing him of pursuing a competing venture. The dispute became more consequential after the dot-com crash of 2001, when Quepasa's shares lost most of their value and management considered liquidating assets. Peterson and Silberman challenged the company and its board through litigation, a proxy contest, and a hostile takeover effort. They regained control in 2002, with Peterson returning as chairman and chief executive. Silberman later left his executive finance and secretary roles and became chairman of the audit committee. Quepasa's business was rebuilt around online community services. In 2005, it launched a social-networking site integrated with its portal, allowing users to move between news and community functions. The company also operated Corazones.com and developed a broader portfolio of Latino digital properties. By the late 2000s and early 2010s, Quepasa described its social network as having more than 30 million users. Its competitors included Facebook, Hi5, Tagged, Sonico, StarMedia, Terra, and other services seeking Latino and international social-network audiences. The company diversified its commercial model through advertising products, social-media marketing, contests, and games. In 2011, PRISA Digital became a reseller of Quepasa advertising products. Quepasa also acquired XtFt Games, connected with Brazil-based social-game developer TechFront. It released Wonderful City - Rio on Quepasa.com and Orkut.com with Mentez, a Miami-based publisher focused on Latin American social games. In July 2011, Quepasa merged with myYearBook, a teen-focused social network. The transaction represented an attempt to combine Quepasa's Latino positioning and social-media assets with a larger youth-oriented community. In 2012, the resulting business was acquired in a transaction reported at $100 million and renamed MeetMe. Quepasa suspended operations as an independent business, leaving behind a legacy as an early bilingual Latino social network and an early publicly traded social-media company.

• 2012

  Acquisition and transition to MeetMe

  [1]Quepasaen.wikipedia.org

  The combined business is acquired and renamed MeetMe, after which Quepasa ceases independent operations.

• 2011

  Expansion into advertising partnerships and social games

  [1]Quepasaen.wikipedia.org

  Quepasa signs an advertising-reseller agreement with PRISA Digital and acquires a social-game development operation.

• 2011

  Merger with myYearbook

  [1]Quepasaen.wikipedia.org

  Quepasa merges with a teen social network to expand its combined community platform.

• 2005

  Social-networking service launches

  [1]Quepasaen.wikipedia.org

  Quepasa adds a social-networking service alongside its portal.

• 2002

  Founders regain control

  [1]Quepasaen.wikipedia.org

  Jeffrey Peterson and Michael Silberman regain control after a legal and proxy dispute and reorganize the company.

• 1999

  Nasdaq initial public offering

  [1]Quepasaen.wikipedia.org

  Quepasa becomes a publicly traded company during the dot-com boom.

• 1998

  The company adopts the Quepasa.com name

  [1]Quepasaen.wikipedia.org

  The business shifts toward a Hispanic-focused web portal and online community proposition.

• 1997

  Internet Century Inc. is incorporated

  [1]Quepasaen.wikipedia.org

  The business begins in the United States as an internet and web-application company.

A bilingual, bicultural online community and social-media platform serving Latino audiences across the United States and Latin America.

• Social network and web portal · 1998

  Quepasa.com

  Quepasa.com was the company's main digital property. It evolved from a Hispanic-oriented web portal into a bilingual and bicultural social network serving Latino users in the United States, Mexico, Latin America, and other markets. The service combined community features with content, communication, advertising, and later entertainment functions. Quepasa presented the site as a large Latino online network with more than 30 million users during its later operating period.

• Online community and social site

  Corazones.com

  Corazones.com was a sister online property associated with Quepasa's international Latino community strategy. It served users in Spanish, English, and Portuguese and complemented the company's broader effort to provide culturally oriented social and relationship-focused online experiences.

• Social gaming · 2011

  Quepasa Games

  Quepasa Games was the company's social-game business, formerly associated with TechFront and XtFt Games. It extended Quepasa beyond networking and advertising into browser-based social entertainment, with an emphasis on Latin American audiences and distribution through social platforms.

• Social game · 2011

  Wonderful City - Rio

  Wonderful City - Rio was reported as Quepasa's first social-gaming title after its acquisition of the TechFront-related gaming operation. The game was launched on Quepasa.com and Orkut.com in partnership with Mentez, a publisher focused on Latin American social games.

• Social-media advertising solution

  Quepasa Contests

  Quepasa Contests was a social-media marketing and advertising solution, formerly known as Quepasa DSM. It represented the company's effort to monetize its audience through branded promotions and interactive campaigns rather than relying only on conventional display advertising.

• 2001

  Dot-com collapse and control fight

  After Quepasa's shares lost most of their value during the dot-com bust, a dispute over the company's future led to litigation, a proxy contest, and a hostile takeover effort by Peterson and Silberman.

  Source

• 1999

  Founder removal and management dispute

  Founder Jeffrey Peterson was removed as chief executive shortly after the public offering. Contemporary accounts describe allegations involving a competing venture and a subsequent conflict between the founder and the company's new management.

  Source

Read more

• 1999Spanish-language brand-building campaign

  United States

  Quepasa invested heavily in Spanish-language outdoor advertising, radio promotions, and national television activity to establish awareness among U.S. Hispanic internet users. Gloria Estefan's participation reinforced the cultural positioning of the campaign.

  Outcome. The campaign helped make Quepasa a prominent destination for U.S. Hispanics during the dot-com expansion, although it also contributed to a high-cost growth model.

  Source

• 2012

  Sale and name change to MeetMeM&A

  Background

  Following the myYearbook combination, the business was consolidated under a new corporate and consumer identity.

  Action taken

  The company was acquired in a transaction reported at $100 million and renamed MeetMe.

  Aftermath

  Quepasa suspended operations as a standalone company and became a discontinued brand.

  Reported acquisition value. $100 million (2012 acquisition)

  Source

• 2011

  Expansion through gaming and media partnershipsM&A

  Background

  Quepasa was diversifying its revenue sources as competition among social networks intensified.

  Action taken

  It partnered with PRISA Digital to resell advertising products and acquired XtFt Games, linked to the TechFront social-game studio.

  Aftermath

  The company launched Wonderful City - Rio and expanded its presence in social entertainment and digital advertising.

  Source

• 2011

  Merger with myYearbookM&A

  Background

  The company needed broader scale and a larger active user base in a market increasingly dominated by major social networks.

  Action taken

  Quepasa led a merger with teen-focused social network myYearbook in July 2011.

  Aftermath

  The combined business later became MeetMe after an acquisition in 2012, ending Quepasa's independent operations.

  Source

• 2005

  Move from portal to social networkingProduct launch

  Background

  Quepasa sought to increase user engagement and create a more persistent online community around its Hispanic-focused portal.

  Action taken

  It launched a social-networking service integrated with the existing Quepasa portal.

  Aftermath

  The company subsequently described Quepasa as a major Latino social network and competed with international and regional social platforms.

  Source

• 1998

  Repositioning around the Hispanic internet marketStrategy

  Background

  The original web-application business was redirected toward a dedicated online portal for bilingual and bicultural Latino audiences.

  Action taken

  The company adopted the Quepasa.com name and built services for English-, Spanish-, and later Portuguese-speaking users.

  Aftermath

  This positioning became the foundation for the company's public listing and later social-network strategy.

  Source

1. 1Quepasaen.wikipedia.org