Social networking service, Tagged announced that it had acquired Hi5 for an undisclosed fee. Hi5 was at one time only second to Facebook and Myspace in terms of popularity but things started to turn around for it and it never recovered. Last year it announced massive lay offs. Tagged on the other hand has been on an upward trend increasing its work force and revenue. Unlike Facebook that aims at connecting and reconnecting friends, Tagged aims at helping people make new friends. The acquisition will significantly increase both its users and revenue. Tagged’s revenue was $33 million in 2010, and it is expected to be between $43 million and $45 million in 2011. Before the acquisition, it boasted of over 100 million registered users.
