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  • fankenguru fankenguru Feb 23, 2014 9:32 AM Flag

    User of Local Corp is only valued with $1, WhatsApp = $42, Yelp = $52, Linkedin = $85, Twitter = $125, Facebook = $141, Angies List = $418 and Google = $748

    User of Local Corp is only valued with $1, WhatsApp = $42, Yelp = $52, Linkedin = $85, Twitter = $125, Facebook = $141, Angies List = $418 and Google = $748

    Shares of Facebook jumped $1.57, or 2.3%, Thursday to $69.63 despite paying what appears to be a lofty $19 billion for online messaging system WhatsApp.

    But investors are increasingly finding ways to justify such lofty purchase prices for Internet companies by looking at how much is being paid for "eyeballs," or users. Investors are betting mobile Internet usage is in such a nascent form getting the users is the hard part, and finding out how to make money on those users comes later.

    And looking at it that way, Facebook got a bargain. By paying $19 billion for WhatsApp, Facebook is buying 450 million users at $42.22 each. Compared with the $141 per user valuation at Facebook, WhatsApp was cheap. In fact, the valuation paid for WhatsApp is lower than the per-user price on most other Internet darlings. Investors are paying $85 per user at professional networking firm LinkedIn, $52 per user at review site Yelp and $125 per user of online messaging service Twitter.

    Those aren't even the highest valuations. Investors are paying $418 per user at online review site Angie's List and $748 per user at online advertising firm Google, based on the 540 million users it reported in its latest annual report. Due to its ability to mine personal data on its users and sell that data, Google commands a lofty 36 P-E based on its earnings the past 12 months, which is double that of the stock market and the technology sector.

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    • If the about 32 million visitors of Local Corp were valued like the visitors of WhatsApp, the market-cap of Local Corp must be 1,344 million - but the market-cap was yesterday idiotic low 36 million.

    • Local Corp. has released Havvit, a local-shopping app that leverages the Krillion data and infrastructure that it acquired a couple of years ago. The company intends the app to be a stand-alone consumer experience as well as a “showcase” of what can be done with its data.

      I found Havvit overall to be a well designed and visually appealing app, though less complete in several respects than Find&Save. The latter is cross platform and has additional features not present in Havvit. However the two are not strictly competitors, Local/Krillion could supply data to Find&Save.

      Like Find&Save, Havvit can be customized (follow stores and product categories) and equally supports e-commerce. In addition it has a useful product price-tracking capability not present in Find&Save. But like Find&Save, Havvit doesn’t have product reviews. Krillion product lead (former Krillion CEO) Sherry Thomas-Zon says that reviews are definitely on the roadmap.
      And Screenwork added:

      "The advent of mobile shopping and the use of smartphones in stores makes Havvit and the underlying product data/technology immensely more valuable to Local Corp and its partners.

      The company has a publisher ad network and it could easily syndicate these local product data to that network and well beyond, via an API. The company describes the Krillion platform “data as a service.” In the past some Krillion partners (e.g., the old Superpages) have not known what to do with local product data on their PC sites. With mobile and new consumer behaviors it’s self evident."

      Source: Read the complete text direct on Screenwor

 
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