Friday, April 11, 2014

IAC buys back 10% of Tinder at USD5B valuation ???

New article at Seeking Alpha says " IAC buys back 10% of Tinder at USD5B valuation"

Are they paying a bribe to someone?

UPDATE from Forbes: "No, Tinder Is Not Worth USD5 Billion"

Tinder Has Made 1 Billion Matches == It is performing as a machine gun shooting flowers.

Another recent article at Seeking Alpha suggests "Tinder could soon start to monetize its popularity"

Do you remember Chatroulette?
It seems Tinder is like Chatroulette but it will collapse like Skout.
Lots of persons want to use it, but nobody wants to pay for it.

There is a large dotcom bubble fueled by venture investment funds, investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose.
Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then, the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating balloons and they need to find a buyer before they explode. If they can not find a private buyer for the entire company, the investors had the strategy of going public, to start trading its shares on the New York Stock Exchange, they turn those pieces of paper (shares) in real money, they get thousands of buyers purchasing lower small parts (shares).

Please read also:
My answer to the Topeka Analysis: Why Investors Should NOT Be Enthusiastic About Tinder.

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