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.

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50% Of Apple’s Revenue Now Comes From The iPhone

Over the last 3 months (December 26th, 2010 – March 26th, 2011), Apple pulled in a grand total of 24.6 billion dollars. Now, what percentage of that do you think is from the iPhone? 10%? 25%?

Get this: 50%. Yep. According to Apple’s latest earning report, an entire half of Apple’s quarterly revenue is coming in from the iPhone and iPhone-related products.

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Yahoo Pointing Finger At Microsoft For Search Revenue Shortfall

Yahoo had another lousy quarter. Revenues were down 6 percent, profits were down 28 percent. What’s more, it’s search partnership with Microsoft isn’t going so great. And the finger pointing is starting.

In a very detailed analysis, Danny Sullivan of SearchEngine Land charts the decline of Yahoo’s search revenues over the past two years. What he calls “net search revenues” (the money Yahoo gets to keep after paying off partners) is down 35 percent from a peak of $551 million two years ago to $357 million. He shows the decline in this first chart below.

During the last two quarters, Microsoft has taken over Yahoo’s U.S. search advertising in return eventually for 12 percent of Yahoos’ search revenues. The red line shows what Yahoo got to keep after paying Microsoft, and the blue line is what it makes off of search before paying Microsoft. That blue line is down 8 percent in the last two quarters You can see the gap between the red and the blue lines in the second chart below.

Remember, handing over search to Microsoft was supposed to come with all sorts of benefits like lower costs and more money for Yahoo.

But the deal is not working out as planned, and Yahoo blames Microsoft. It’s not quite where it should be yet in terms of its revenue per search. Yahoo CEO Carol Bartz said during the earnings conference call:

On the downside, however, adCenter isn’t yet producing the RPS [revenue per search] we hoped for and are confident as possible.

In other words, Microsoft is under-monetizing. And organic search results from Bing apparently are too good, which makes people click the paid search ads even less. Even Yahoo’s inflated search market share figures (due to slideshows and other forced search methods) weren’t enough to generate more revenues.

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4INFO Nabs Mobile Ad Exec Ray Colwell As Chief Revenue Officer

Mobile advertising company 4INFO has made a key hire today. The company has added advertising exec Ray Colwell as chief revenue officer.

Most recently, Colwell was the vice president of national and direct sales at display ad network Collective. Colwell has helped to create mobile campaigns for brands including Discovery, Bank of America, Procter & Gamble and Ford and was previously vice president of mobile video ad network Transpera (which was recently acquired by Tremor Media).

He was also senior vice president of Third Screen Media (which was bought by AOL). Colwell has also held several sales and marketing positions at Yahoo, Lycos, Engage Technologies, Adsmart, Pointcast and Ziff-Davis.

Founded in 2005, 4INFO has dominated the SMS ad space, with roughly 3,000 publishers on its msgHaven platform. This publishing platform, which allows clients to manage the content and delivery of their SMS campaign, delivers around 400 million text messages each month (which has doubled in the past year).

The network, which has raised $38 million in funding, also reaches 78 million uniques a month in mobile display/apps through its AdHaven platform and audience network. The company is now profitable and pouring that money back into R&D and hiring.

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Peliculas Online

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