Well, looks like our sources from back in September were on to something as LBi, which was on the shortlist of those interested in acquiring NYC-based social media agency Mr. Youth, has indeed followed through with the purchase. Original valuation according to those familiar with the matter was set at $50-75 million a couple of months back, but according to AdAge, Mr. Youth sold for $40 million. The agency’s CEO, Matt Britton, who founded the agency in 2002, will remain on board as head of the agency while taking on a dual role in the social media sector at LBi.
In a statement, Britton says, “”It was clear the moment we met with LBi that there was the potential to do something big. Their global footprint, creative excellence, and technical proficiency will be a powerful mix when combined with our intellectual property, social media marketing model, and deep domain expertise in marketing to millennials. We are incredibly excited about our future together.”
Mr Youth currently has 140 full-time employees and expects net sales of approximately $25 million in 2011.