So United Online finally makes an acquisition (there was a rumor a few months back that it would buy MusicMatch…well, that one went to Yahoo)...it is buying the community/friends site Classmates.com, for $100 million.

Classmates, which has 175 employees, has similar sites in Switzerland and Germany.

Company release: At September 30, 2004, Classmates had 1.4 million pay subscribers…During the nine months ended September 30, 2004, the company generated revenues of $54 million - 75% from subscription fees - and operating income of $3.7 million, after $4.9 million of depreciation and amortization expenses…