Social Network hi5 Lays Off 50%; Partners With Mochi for Games

Authored by Mark Hefflinger on April 1, 2009 - 10:15am.

San Francisco - Online social network hi5, which currently claims 62 million monthly unique users, has laid off around 50% of its 100-member staff after failing to secure an anticipated round of new funding, VentureBeat reported.

The company, which went through a smaller round of layoffs last October, was reportedly close to raising a new $30 million round, but the deal fell through, a source told VentureBeat.

Meanwhile, San Francisco-based hi5 itself said on Wednesday that it will look to re-focus itself on the games sector, announcing a deal with online games network Mochi Media.

Hi5 will add a range of Mochi's 7,000 Flash-based games, and generate new revenue through in-game MochiAds.

The company also plans to expand its virtual currency, hi5 Coins, for use in direct transactions like downloadable games, challenging friends, premium game content, advanced gaming features, and status upgrades.

Related Links:
http://snipurl.com/f13al (VentureBeat)

http://www.marketwire.com/press-release/Mochi-Media-968956.html

http://www.hi5.com

http://www.mochimedia.com