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Yesterday, Yahoo turned in what its fans kindly described as a well-at-least-we’re-not-falling-off-the cliff earnings report.

True, true, but it was nothing to be proud of either, with earnings and revenue down in the third quarter, along with a slew of other business deficits. Yahoo CEO Marissa Mayer gamely tried to smooth it all over – a unique talent of hers – in a kind of retro-chic method, by pointing out that Yahoo’s user traffic is back to 2011 levels and that mobile was growing.

Of course, it’s booming everywhere across the Internet, with rivals managing to monetize the explosive growth that Yahoo simply still cannot.

As the New York Times’ Nicole Perlroth aptly wrote in the lede of her piece about the Q3 debacle: “The honeymoon is over … 15 months after she took over, Ms. Mayer has failed to translate Yahoo’s user increase into meaningful revenue growth.”

This is not to say that she will not eventually, especially if she can keep attracting top talent to help her.

But it’s lucky Mayer has the magnificent performance of China’s Alibaba Group as a lifesaver. Yahoo, which owns a big stake in the e-commerce juggernaut, has seen its stock boom in tandem with investor frenzy to get any piece of the Alibaba rocket ship before its expected IPO next year.

Essentially: Buy Yahoo, get Alibaba; or perhaps more simply put, buy Yahoo as a proxy for it.

But why take my word for it? Here’s the Yahoo slides, press release and also a filing on a new agreement with Alibaba to be able to hold onto more of its shares upon the IPO (Yahoo knows a good investment when they see it) to peruse to get a handle on what’s actually going on.

And that is: A still-damaged core business that is struggling mightily to turn around, with a lot of help from Asia and also the mojo provided by Mayer’s own personal halo.

Here’s Yahoo’s own data to look over:

Q313_YHOOEarningsSlides

Yahoo – Yahoo Reports Third Quarter 2013 Results

Form 8-K

(Photo from Mayer’s Tumblr blog, showing new sign at Yahoo’s Sunnyvale HQ with new logo she helped design.)

snapchatdollar640

Only a few months after closing a Series B round of $60 million that valued the ephemeral messaging company at $800 million, Snapchat has been in talks for another funding that values it at up to $3.6 billion, according to sources close to the situation.

Sources also added that the funding itself would be in the hundreds of millions of dollars and that the lead investor might be a strategic party from Asia.

Such a deal could still fall apart, of course, but the effort has become well known among several Silicon Valley venture firms, who have considered investing.

A spokeswoman for Snapchat declined to comment.

The investor is neither China’s Alibaba Group nor Japan’s Rakuten, which has put a lot of money in Silicon Valley startups of late, said sources. One interesting possibility would be China’s Internet giant Tencent, which makes money from in-app transactions.

The move by the Los Angeles-based company comes on the heels of another massive funding round raised by social scrapbooking company Pinterest, which announced earlier this week that it just raised $225 million at a $3.8 billion valuation.

Besides the huge piles of investment dough being poured into them, here’s what else the pair have in common: Little to no revenue.

That does not seem to have stopped a panoply of venture and other investors from jumping in and ponying up with huge amounts of cash for the privilege of investing in several fast-growing startups, hoping to grab ahold of the next Twitter or Facebook early.

Launched in 2011, Snapchat has grown wildly popular in a relatively short span of time, effectively creating an entirely new genre of messaging category with its “ephemeral” pictures and videos that last for only a matter of seconds.

Snapchat’s last round – which it called a “scaling round” for infrastructure improvements – was announced in late June, led by Institutional Venture Partners, with participation from General Catalyst Partners and SV Angel. Previous investors Benchmark Capital and Lightspeed Venture Partners also participated. With that round, the company had raised around $75 million in total.

Snapchat's Evan Spiegel

Snapchat’s Evan Spiegel

All the fervor has been due to Snapchat’s fast growth and younger demographic. Only a few months ago, co-founder and CEO Evan Spiegel boasted that the service had more than 200 million snapped pictures and video taken by its users on a daily basis, up from 150 million just months before. Then in September at the TechCrunch Disrupt conference, he said that the number had grown to 350 million self-destructing messages daily.

At the time, there was also an additional $20 million in a secondary offering just four months ago.

At the time of the June funding, in an interview with AllThingsD, Spiegel noted: “We’re excited about in-app transactions because of what we’ve seen in the Asian markets.”

A clue!

Snapchat has clearly been a phenom of late.

Indeed, the app has proved so popular – and potentially worrisome to established social players – that sources said when Spiegel continually rebuffed Facebook CEO Mark Zuckerberg’s acquisition offers, Zuckerberg cloned the app outright with a service called Poke. Zuckerberg’s offering famously flopped, while Snapchat continues to grow.

Most recently, Snapchat has begun to experiment with features outside of its core ephemeral messaging service. The company launched its Stories product last month, essentially a long-form play on Facebook’s status update in the form of a picture or video. And recently, Spiegel has grown more keen on the idea of monetization, experimenting with bands and listening to music inside the app.

The company, however, has not been without its problems. Early on in its history, Snapchat had to fight the perception that it was a “sexting service” for tweens, a fly-by-night app used to easily spread lewd photos. And it is still involved in ongoing litigation with Frank Brown, a collaborator from the service’s early days, who is suing the company he was pushed out of.

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