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Snapchat Said in Funding Talks With Alibaba at $10B

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Re: Snapchat Said in Funding Talks With Alibaba at $10B

#11

Post by Alupis »

JonLim wrote: post #5
Alupis wrote: post #2

My company has already created an 11main.com (Alibaba's first US ecommerce website) account and setup a significant amount of our catalog. The site is still in private invite only -- but hopefully will go public soon. We expect Alibaba to come into the US on a storm. They are huge - they have capitol, and they can afford losses in the hundreds of millions per quarter just to compete with Amazon (and snuff out part of…

What would differentiate 11main (or any other Alibaba property) from offerings in the US? Amazon probably has quite a few people locked in with Prime and their Kindle devices (I know I wouldn't switch e-book providers) so I wonder what exactly would 11main do better?

Not sure yet. 11main.com in particular has a more "local" feeling to it style-wise. I find it aesthetically pleasing to look at, instead of the blocky old look/feel of amazon.com.

I think 11main.com is only their first recon assault wave. More will come.

Alibaba is the parent company for a lot of child companies -- they have an equivalent for most of our major US companies[1]

It's a little intimidating when you realize the scale these guys are playing at.

[1] http://qz.com/206283/all-the-western-companies-youd-have-to-...

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#12

Post by Alupis »

bsenftner wrote: post #3

I don't understand this valuation - it's makes no sense to me. Can anyone explain how SnapChat could be worth even a fraction of this? Where is the value in SnapChat's user base, future blackmail? It's not like someone using SnapChat is in the appropriate state of mind to follow any ads in the app. I don't get it...

IMHO, it's yet another gross over-valuation of a tech startup. The Over-valuation Bubble will burst... eventually. These companies are not really worth their current valuations.

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#13

Post by Alupis »

mkaziz wrote: post #6
Alupis wrote: post #2

My company has already created an 11main.com (Alibaba's first US ecommerce website) account and setup a significant amount of our catalog. The site is still in private invite only -- but hopefully will go public soon. We expect Alibaba to come into the US on a storm. They are huge - they have capitol, and they can afford losses in the hundreds of millions per quarter just to compete with Amazon (and snuff out part of…

I'm just glad that Amazon has competition. I love them, and I don't want them going the way of the Comcast-style behemoth.

There's already a lot of dirty things Amazon does -- try selling in the same sector as them. You can't compete with a company that is willing to take tens of, sometimes hundreds of millions in losses for years just to ensure 10 years down the road, they have a controlling interest.

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#14

Post by free2rhyme214 »

Alupis wrote: post #12
bsenftner wrote: post #3

I don't understand this valuation - it's makes no sense to me. Can anyone explain how SnapChat could be worth even a fraction of this? Where is the value in SnapChat's user base, future blackmail? It's not like someone using SnapChat is in the appropriate state of mind to follow any ads in the app. I don't get it...

IMHO, it's yet another gross over-valuation of a tech startup. The Over-valuation Bubble will burst... eventually. These companies are not really worth their current valuations.

Of course. Since Snapchat didn't go the way of Tumbler or Instagram, they have to monetize their platform with ads like Twitter or Pinterest.

It will happen one day.

The real value that they have is the huge user base of kids who will forget about snapchat once they go to college.

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#15

Post by nilkn »

bsenftner wrote: post #3

I don't understand this valuation - it's makes no sense to me. Can anyone explain how SnapChat could be worth even a fraction of this? Where is the value in SnapChat's user base, future blackmail? It's not like someone using SnapChat is in the appropriate state of mind to follow any ads in the app. I don't get it...

I think it's based on the expectation that at some unspecified date in the future Snapchat will find a way to make an unspecified amount of money via an unspecified method.

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#16

Post by autokad »

bsenftner wrote: post #3

I don't understand this valuation - it's makes no sense to me. Can anyone explain how SnapChat could be worth even a fraction of this? Where is the value in SnapChat's user base, future blackmail? It's not like someone using SnapChat is in the appropriate state of mind to follow any ads in the app. I don't get it...

i increasingly feel that we are not in a bubble, but we are in THE bubble

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#18

Post by nilsimsa »

Alupis wrote: post #13
mkaziz wrote: post #6

Earlier quoted context omitted.

I'm just glad that Amazon has competition. I love them, and I don't want them going the way of the Comcast-style behemoth.

There's already a lot of dirty things Amazon does -- try selling in the same sector as them. You can't compete with a company that is willing to take tens of, sometimes hundreds of millions in losses for years just to ensure 10 years down the road, they have a controlling interest.

It is still different. Comcast got to where it is by buying out competitors and with a monopoly in providing cable within a city. There is no choice to shop for alternatives in many cities. With Amazon, there are multiple competitors. It is just that Amazon is willing to take little or no profit on an item.

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#19

Post by nilsimsa »

mcone wrote: post #8
Alupis wrote: post #2

My company has already created an 11main.com (Alibaba's first US ecommerce website) account and setup a significant amount of our catalog. The site is still in private invite only -- but hopefully will go public soon. We expect Alibaba to come into the US on a storm. They are huge - they have capitol, and they can afford losses in the hundreds of millions per quarter just to compete with Amazon (and snuff out part of…

Hmm... one problem they have already is their brand name. "11 Main" doesn't exactly roll off the tongue.

Yes it is a terrible name. First thing they need to change.

Re: Snapchat Said in Funding Talks With Alibaba at $10B

#20

Post by free2rhyme214 »

badloginagain wrote: post #17

Sorry if this is a dumb question, but how does Snapchat make money?

They don't currently but they will have to display ads eventually like Twitter, Facebook, Pinterest, Tumbler, and the like because a business can't run on VC fumes forever with stockholders.
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