Youth Republic, a marketing agency making up strategies aimed at young population and working with significant companies such as Unilever, Ulker, Vodafone and Coca-Cola, acquired the majority shares of OrtaKantin.com, a social network for university students, and incorporated the company.
OrtaKantin.com was founded by Vadi Efe and Volkan Bicer in 2005. The service currently has nearly 100 thousand (exactly 91,541) members and is used by collage students, and had Youth Republic target population in hand.
We do not have certain information on the acquisition rate, but OrtaKantin.com will continue its services under Youth Republic. Even so, Vadi Efe could direct the operations as we have heard.
Thanks to a source, we have accessed a bulletin on the issue to be sent to the media in the coming days by Youth Republic, and we can share Co-Founder and General Director Serhat Gurcu’s opinions with you. Concerning the acquisition of OrtaKantin.com, Serhat Gurcu said:
“Youth Republic used to link its young members to brand names through various channels in the offline world, but we needed to enter into the online world as well. We provided exclusive solutions to our customers by making web sites for our own campaigns, but now, we have taken an effective step onto the digital world by buying an important website for young people. We expect a great synergy from this acquisition.
Ortakantin.com currently in holds 100,000 college students and has a significant income from advertising. With the investments we’ll make, we are planning to reach 500 thousand college students in 2 years. We are solely focused on reaching students in the online world.
Ortakantin.com will not only make our current channels interactive, but also provide the necessary infrastructure for our future projects. When considered from this point of view, Youth Republic again takes a step to create and expand its own market.”
Youth Republic is currently working with 140 campus Brand Managers in 90 different universities. In this way, it would not be wrong to say that the company actively participates in universities. I believe that Youth Republic and OrtaKantin.com will create a significant synergy.
Related to cost of the acquisition, as I mentioned at the beginning of the article we do not have precise information. In this regard, even though I tried to get some details, I couldn’t get a word from Vadi Efe and Volkan Bicer. Therefore, I just have to go on with estimates.
And if you ask my personal opinion and guess, when we check the past information from the sources we have on OrtaKantin.com, we might recall that in 2008 it had a monthly advertising income between 8000-12000 TRY on average. As of today, the service’s monthly advertising income has come to an important level at 20.000 TL – 24.000 TRY, as we learned from a source.
In this case, we can assume that average value of OrtaKantin.com for the whole of the service of has come to 700.000-800,000 TRY levels. Youth Republic probably bought some of the shares of partners in cash, and it has provided a certain extent of investment to the company in parallel with the shares it bought.
UPDATE: Youth Republic General Manager Serhat Gurcu said that it is not possible for him to share the acquisition cost for strategic reasons, but they will invest in OrtaKantin.com a total of 1 million dollars in 2 years (approximately 1,500,000 TRY).
If we access to certain information related to the issue, we will certainly share with you. And I’d like to add that this acquisition or incorporation is happy news since it is an indicator of the fact that some activity has started in the market and will continue.