I literally cannot stop laughing about this.. I have been laughing and laughing and laughing....tears are rolling down my face as I read this article. $22,700,000,000....I didn't say $22 million with the letter M I said it with a B...here we are again with a lame app that's getting ludicrous valuations thanks again to the hype of wallstreet and their lame childish ways of creating these series of financing to create these high valuations on companies that should have valuations of 1/10th to 1/25th even 1/50th of what they actually deserve...it seems snapchat made an acquisition a few months ago by buying out Bitstrips for (get this haha) $100,000,000...yes Bitstrips is an application where you can send emojis, yes emojis of yourself to your friends, how anyone could value that at $100 million is beyond me...guess when you have plenty of funding coming in and a valuation in the billions you can spend $100 million on anything and investors will come in and give you even more money....that's where all that wallstreet rounds of financing are going...to buying up other worthless applications.....this money being pumped into these companies creating bubble valuations is once again because of the federal reserve and central banks..... From techcrunch This new financing, we understand, is a follow-on to the $175 million Series F round led by Fidelity. Snapchat was said to be valued at $16 billion in that round, flat on the year before. However, filings from earlier this month and embedded below, uncovered for us by market analysts VC Experts, show that the Series F was expanded. http://techcrunch.com/2016/05/23/so...g-more-money-at-about-a-20-billion-valuation/
I've got the Bitmoji app on my phone, and it is pretty entertaining and fun to use. But $100 Million for that? That just seems completely absurd.
No one is looking deeper into the prices paid for some of these acquisitions... This should raise an immediate red flag....$100 million for a company that all they do is emojis ...I mean come on...if Snapchat is so brilliant they could have hired a few designers and started their own bitemoji team for less than $1 million....just goes to show you how these unicorns are spending their money on nothing but worthless companies......
All tech companies are overrvalued i don't know how they come up with those delusional dreamland figures. The web landscape changes so fast...that they should really use much lower multiples and future expectations. Makes me think of Yahoo's relatively recent acquisition of Tumblr, they paid 1 billion for it...and now Yahoo is writing all of it off as a complete loss.
Where did you hear they were writing off the acquisition of tumblr ? I wrote on this forum 3 years ago about how Yahoo was getting ripped off buying out tumblr for a billion ...I mean this wasn't even a guess or prediction.. I was making a point that Yahoo was paying way to much for a worthless company and I was right again.....
There is a very simple answer to where those valuations are coming from: CHEAP MONEY. As long as money is rained down on banks and corporations (corp bond issuance is at extreme levels) companies attain absurd valuations just because there are investors who are willing to pay for. It applies to everything in life. Look at the following houses in HK and tell me whether they are worth 50-70 million USD. To me similar property can be had at prime LA, Miami, or even NYC locations at a fraction of the cost. The problem especially with many of the rich in HK and Chinese companies is that there are too many newly rich who made a fortune not on the basis of hard and honest work but off the back of ludicrous valuations and get-rich-quick schemes. We only hear of the few lucky ones, some of those guys actually take insane risks and are leveraged to the hilt, it's just we dont hear of the many who go broke in the process. Most of that can be traced back to "wild-west markets" or easy monetary policies. https://www.hksothebysrealty.com/en...to=1000000&bed_fr=0&rental_to=300000&offset=6 https://www.hksothebysrealty.com/en...to=1000000&bed_fr=0&rental_to=300000&offset=7 https://www.hksothebysrealty.com/en...&bed_to=9&price_to=100000000&rental_to=300000
I thought the snapchat was valued at 1 Trillion, haha; Yahoo think the snapchat is still undervalued; then they should buy it as they had originally planned and get the return on investment within next 300 hundred years; I don't know who manage Finance plans at Yahoo, but he is a true textbook advocate!