By creating new verticals it will give us a much broader berth to take advantage of advertising revenue in a much broader way, a much less intrusive way than what was done in the past.
On Affinity Labs, can you just give a sense of what the revenue contribution was in the quarter?
We are not specifically breaking out the results of Affinity Labs from a revenue point of view but it is doing better than we expected when we bought it at this stage of the game. Its numbers are pretty small and there are 12 different verticals and three launched this quarter.
The whole purpose behind the acquisition of Affinity and some of the actions that we are taking, even the action with regard to Tickle is to focus our energy on expanding the verticals where we really believe there’s promise and there’s opportunity in the future.
On China HR, what are the diligence issues that have come up?
We are extremely excited and very interested in participating in a very significant way in the China market. A population of 1.3 billion people, an economy that is fast becoming the industrial powerhouse of the world. We need to be there and we think there is huge opportunity.
The China HR deal was structured several years ago. We are looking at the transaction that was put in place then and we feel that there are a number of issues that need to be discussed, negotiated. We have the equal right and need to negotiate strongly from the point of view of our shareholders and we intend to do that.
Does this mean there is room to negotiate on the price?
There are some things in the original contract that were a little bit nebulous that we would like to discuss more fully with our counterparty and reach hopefully an amicable solution.
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