United Online is paying $100 million in cash for Classmates, the leading service for re-connecting people to their high school friends (in a way, it’s a social networking site–it just doesn’t utilize the six degrees of separation theory the way the newer services do).
United’s market cap is in the $500 million range. It is apparently trying to purchase more subscription services. Earlier this year it purchased About Web Services, an Orem-based hosting company (formerly known as Freeservers). Both Classmates and About Web Services have huge numbers of users. The question is will United Online know how to run and grow these businesses, or will they fail to execute? Time will tell.