LivingSocial Financials Exposed: $2.9 Billion Valuation, $50 Million In Revenue Per Month

There’s nothing like full disclosure during the negotiating process in an acquisition deal. LivingSocial acquired SocialMedia for just $3 million in stock, we reported earlier today. As part of the negotiating process they disclosed key financial information to SocialMedia to help that company understand the value of the stock they were receiving in the deal. That information is now in my inbox.

SociaMedia is getting around 545,000 shares of common stock of LivingSocial, valued at $3 million. That implies that there are approximately 520 million shares outstanding. At the recent Series E preferred price of $5.65 per share (which is what most people would use for valuation purposes), LivingSocial is a $2.9 billion company.

LivingSocial is no Groupon when it comes to revenue, but it’s doing just fine. February revenue was $50 million, says our source, and projected revenue for 2011 (assumed calendar) is a cool $1 billion. Our best guess on Groupon revenue in February was a little under $100 million, so it’s roughly twice the size of LivingSocial.

READ MORE » LivingSocial Financials Exposed: $2.9 Billion Valuation, $50 Million In Revenue Per Month

Samsung Inks $1.375 Billion Deal With Seagate On HDD Operations And More

Samsung and Seagate this morning announced a broad ‘strategic alignment’ in a move to expand their existing relationship and more effectively counter competitor Western Digital.

The most important elements of the agreement include Samsung combining its hard disk drive operations into Seagate, receiving significant equity ownership in the HDD and storage solutions provider and enhancing the current patent cross-license agreement between the two companies.

In addition, Samsung and Seagate inked a NAND flash memory supply agreement under which Samsung will provide Seagate with its semiconductor products for use in Seagate’s enterprise solid state drives and other products, as well as a disk drive supply agreement under which Seagate will supply drives to Samsung for PCs, notebooks and other consumer electronics.

The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash.

Upon closing, Samsung will receive Seagate shares 45.2 million shares with a total value of $687.5 million, representing approximately 9.6% ownership of Seagate, plus $687.5 million in cash.

The agreement has no financing contingencies, and is subject to customary closing conditions, including review by U.S. and international regulators. The transactions are expected to close by the end of calendar year 2011.

Samsung and Seagate will also collaborate to develop new enterprise storage solutions, and a Samsung exec will be nominated to join Seagate’s board of directors in the near future.

Something like this was bound to happen after rival Western Digital recently announced that it would buy Hitachi Global Storage Technologies for $4.3 billion in a deal that will expand the company’s reach in data storage.

At the end of last year, Seagate reportedly turned down an acquisition offer from Western Digital after being actively courted by private equity firm TPG Capital, which reportedly offered more than $7.5 billion for the company.

Yesterday, reports claimed that Samsung was indeed considering selling its money-losing HDD business for $1 billion to 1.5 billion to raise cash to invest in new growth areas, with Seagate being named as a potential buyer.

Samsung has about 18% of the HDD market, according to iSuppli.

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IAB: Internet Advertising Reached $26 Billion In 2010, Display Grew Twice As Fast As Search

The Internet Advertising Bureau released its numbers for 2010 (PDF). Last year, online advertising in the U.S. grew 15 percent to $26 billion. After a 3 percent dip in 2009, growth resumed in 2010, hitting a record high. Industry revenue in the fourth quarter alone hit $7.45 billion.

Search still made up 46 percent of that total, followed by display ads at 38 percent.But display advertising grew twice as fast as search (24 percent growth versus 12 percent). Search advertising in the U.S. totalled $12 billion, with display closing the gap at $9.9 billion.

Video advertising (which is counted as part of display) now makes up 5 percent of the total. It jumped 40 percent to $1.4 billion. This was also the first year that the IAB is estimating mobile display advertising revenue between $550 million and $650 million.

Compared to other forms of advertising, Internet advertising surpassed newspaper ads in the U.S. last year ($22.8 billion) and is now second only to TV ($28.6 billion)

Here is the breakdown below

View the original article here

Peliculas Online

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