Saturday, June 28, 2014

Will IAC Buy SparkNetworks? My bet: NO


http://www.onlinepersonalswatch.com/news/2014/06/will-iac-buy-sparknetworks.html

http://nypost.com/2014/06/24/match-making-site-jdate-for-sale-and-seeking-suitor/
 Will IAC Buy SparkNetworks? My bet: NO

Recently, I read the article published by Bloomberg "As Tinder Flirts With Ads, Is It Worth Millions—or Billions?"
The journalist who had written the article says: "Last August I asked Match CEO Sam Yagan how much IAC would have had to pay for Tinder if it were acquiring the company as an independent startup, instead of having grown it in-house. Having sold his own dating business to IAC’s Match unit for USD50 million, he knew well the history of such sales. “I can’t think of a single acquisition of a dating site for more than USD10 million by someone other than Match,” Yagan said. “We are the global buyer.”"
http://onlinedatingsoundbarrier.blogspot.com.ar/2014/01/match-vs-tinder-or-tinder-vs-match.html
http://www.businessweek.com/articles/2014-01-03/as-tinder-flirts-with-ads-is-it-worth-millions-or-billions
http://seekingalpha.com/news/1671453-bloomberg-iac-buys-back-10-percent-of-tinder-at-5b-valuation-updated
http://www.forbes.com/sites/jeffbercovici/2014/04/11/no-tinder-is-not-worth-5-billion/
http://www.businessweek.com/news/2014-05-13/match-flirts-with-new-mobile-app-after-tinder-popularity-surges
http://internetdating.typepad.com/courtland_brooks/2014/05/match-group-interview-with-ceo-sam-yagan.html

In other words, I understand they want to pay no more than USD10 million for any big online dating site, considering the average dater belongs to 4 o 5 online dating sites at the same time.
Just my two cents.

But with less than USD10 Million you can copycat eHarmony
or
 innovate and revolutionize the Online Dating Industry, killing those old & obsolete sites forever.


Do you want to innovate in the Online Dating Industry?
Read: The 8 tips to innovate in the Online Dating Industry 2014!  

  
Please see also:
My answer to the Topeka Analysis: Why Investors Should NOT Be Enthusiastic About Tinder.
http://onlinedatingsoundbarrier.blogspot.com.ar/2014/04/my-answer-to-topeka-analysis-why.html
Dave Evans, last May 2013 had blogged about Spark Networks and said
"if you look at past IAC dating site deals, Spark Networks’ financials don’t appear similar to those of companies that IAC has acquired. Go look at the financials for the full picture."
http://onlinedatingpost.com/archives/2013/05/investor-thinks-spark-networks-is-the-next-netflix/
http://www.benzinga.com/trading-ideas/long-ideas/13/05/3580415/whitney-tilson-facebook-iac-takeover-target-could-be-the-next

From Spark Networks, Inc. (LOV) Q1 2014 Earnings Conference Call
Q1 2014 revenue was USD 16.6 Million, a decrease of 4% YOY.
Net loss was USD 2.9 Million, same as in the year ago period.
The number of paying subscribers (286,042 on average) also decreased 3.2% YOY.
ARPU (average revenue per user per month) USD 18.40

The company is now focusing on profitability, according to its CEO.

The company should also focus in innovating to revolutionize the Online Dating Industry. If not, it is a dead walking cat.
http://onlinedatingsoundbarrier.blogspot.com.ar/2014/05/about-spark-networks-inc-lov-q1-2014.html

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