Jajah to Exit at $200m - $400m
Written by dean on Nov 10, 2009 - 03:04 PM
Two in one week - first Gizmo, and now Jajah.
Techcrunch is reporting that Microsoft, Cisco and O2 are bidding and the price may well hit the dizzy heights of between $200m and $400m.
That's extremely rich in this market, but what we don't know is how much profit Jajah is making on each of it's claimed 25 million users.
http://www.techcrunch.com/2009/11/09/ex ... ed-gizmo5/
The interesting thing for me about this is the valuation numbers by customer. This price range is actually in line with the recent Skype deal and lands the value of a budget minutes customer at between $8 and $16 per head. I feel thats rich because based on my own research I would put the profit value of a budget minutes customer at around $12/year, max. And they churn really really easily.
So for the other VoIP/callback etc type players out there, for every 1 million customers you have, your value is around $8m - $16m.
Jajah were known to be one of the largest in terms of subscriber numbers out there. It's probably not a great valuation benchmark for the smaller players who raised large ($10m+) sums of VC cash. In fact, many of them now cannot exit and need to build a real business, which is the hard part especially going up against the incumbents or targetting the business space.
Of course, customer numbers are one thing. The other reason for the purchase will be people, and Jajah may have a solid and disruptive team - they certainly know how to get products out there and I always felt their white-label platform was a great move, and at a time when it was bucking the trend to do such things.
If it happens, and it looks like it will, big congrats to the Jajah team.
Techcrunch is reporting that Microsoft, Cisco and O2 are bidding and the price may well hit the dizzy heights of between $200m and $400m.
That's extremely rich in this market, but what we don't know is how much profit Jajah is making on each of it's claimed 25 million users.
http://www.techcrunch.com/2009/11/09/ex ... ed-gizmo5/
The interesting thing for me about this is the valuation numbers by customer. This price range is actually in line with the recent Skype deal and lands the value of a budget minutes customer at between $8 and $16 per head. I feel thats rich because based on my own research I would put the profit value of a budget minutes customer at around $12/year, max. And they churn really really easily.
So for the other VoIP/callback etc type players out there, for every 1 million customers you have, your value is around $8m - $16m.
Jajah were known to be one of the largest in terms of subscriber numbers out there. It's probably not a great valuation benchmark for the smaller players who raised large ($10m+) sums of VC cash. In fact, many of them now cannot exit and need to build a real business, which is the hard part especially going up against the incumbents or targetting the business space.
Of course, customer numbers are one thing. The other reason for the purchase will be people, and Jajah may have a solid and disruptive team - they certainly know how to get products out there and I always felt their white-label platform was a great move, and at a time when it was bucking the trend to do such things.
If it happens, and it looks like it will, big congrats to the Jajah team.
Reply from dean on Nov 12, 2009 - 06:38 PM
| Quote: |
| So for the other VoIP/callback etc type players out there, for every 1 million customers you have, your value is around $8m - $16m. |
That said, how many buyers are left out there?
Just a thought.... price may be dropping rapidly.
Reply from andyk on Nov 15, 2009 - 02:28 PM
| Quote: |
| The interesting thing for me about this is the valuation numbers by customer. This price range is actually in line with the recent Skype deal and lands the value of a budget minutes customer at between $8 and $16 per head. I feel thats rich because based on my own research I would put the profit value of a budget minutes customer at around $12/year, max. And they churn really really easily |
... and do those valuations include liability for all the prepaid customer account balances?
Reply from dean on Nov 15, 2009 - 02:50 PM
| Quote: |
| ... and do those valuations include liability for all the prepaid customer account balances? |
As far as I'm aware both the Jajah and Gizmo5 sales were complete share sales, so lock stock and barrel.
| Forum Rules and Guidelines | About VoIP User | Privacy Policy |
All logos and trademarks in this site are property of their respective owner. Comments and posts are property of the poster, all the rest (c) 2003-2008 VoIP User Limited. VoIP User Limited is incorporated in England and Wales under Company Number 6694577. No part of this site may be reproduced without our prior consent. |
