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Monday, April 7, 2014

Stickers Line Strength

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Stickers Line Strength

Facebook Acquisition top WhatsApp worth $ 19 billion, implying that the company that wants to buy a conversational application must spend a lot of money . When talking about the Line , have more money .

Line , which developed Naver , South Korea's internet search service , dominating the conversation in the Japanese market applications . Line also to top of the same market in Taiwan and Thailand . In contrast to WhatsApp , which is basically pure message exchange platform , Line continues to persuade users to pay for mobile games and virtual stickers .

Do not stickers Line scornfully . A total of 1.8 billion sticker sent every day . Most are free stickers . However , users are willing to pay a dollar or two to express themselves . For example, with a pay package of Hello Kitty stickers . Some younger users even just chatting through stickers , no need for words.

Line revenue growth exceeded tenfold last year to $ 545 million . Competitors , WeChat and conversational applications Mobile QQ , pocketed about $ 95 million of the games offered in the fourth quarter , according to China's Tencent Holdings origin , owner WeChat and Mobile QQ . But both have a larger user base than the Line .

Naver stock value climbed nearly triple by 2013. Search and portal business services company that is probably worth about $ 6.8 billion , or 15 times more than the 2014 revenue forecast , call Eric Cha from Nomura . The rest of the market capitalization of Naver , the amount of $ 18.2 billion , could be seen as a valuation Line .

Applications that conversation has 400 million registered users , up from 300 million in November . Line does not itemize the number of monthly active users . However , Nomura predicts the amount exceeds half of the total , ie 210 million . This implies a valuation Line is $ 87 per active user . Its value is approximately doubled from $ 42 per user WhatsApp , but on par with the predictions WeChat valuation .

This high value of the shares can be justified , because the line has the ability to reap revenues . However , this justification is formulated with the assumption that Facebook is not paying too much to buy WhatsApp - something that is still not certain . Using the same assumptions , valuation Line more than 33 times the volume of sales . While it is not yet clear whether the Line generating profits . To ensure multiples , investors should expect a sticker and not just a line gaming fad . And , Line should add new markets . Indonesia, which once dominated the BlackBerry , becoming a big market for grabs .

However , given the flood of competitors this time , Line must move very precisely . It would be a danger to the industry if the massive valuations have become reasonable .

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