Wednesday, January 21, 2015

Topeka Capital Sees Ad Potential in IAC's Tinder Mobile App???

"Topeka Capital analyst Victor Anthony maintained a Buy rating on IAC with a price target of USD87 on January 16th citing the ad potential on Tinder that could lead to increased monetization."
Investing article,-tinder-238844

I answered:
Have you seen the annual revenue of Match, Chemistry, OkCupid, Meetic, and other IAC's (nasdaq: IACI) online dating sites excluding Tinder? In the range of USD 800 Million with profits. The prospective revenue of Tinder is no more than USD 100 million because it will not outperform Badoo. As a social discovery site, Tinder, could make no profit at all, like Zoosk! (pending: ZSK)

Recently, Badoo backed Bumble (by former employees of Tinder) in order to compete with Tinder.

The mission of Tinder was to destroy Badoo, Zoosk, HowAboutWe, Spark Networks' sites, Snap Interactive's sites and others similar to them (social dating, social discovery)
Tinder failed in that mission and now is destroying Match (cannibalizing it from inside)

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