Smart Strategy Behind Twitter’s Newest Acquisition?


271_1310601711Why would a company want to pay $350 million to acquire a company that has reported less than $10 million in revenue? According to a recent article in the New York Times’ Deal Book, Twitter had some very good reasons for wanting to buy the advertising technology company, MoPub. More importantly, though, is that it provides Twitter with the ability to bring even more to the technology table.  MoPub provides mobile publishers with a hosted ad platform.  The services it offers are a real-time ad exchange and a service that pairs advertisers with app developers who can place ads within programs. This focus is one that can open up a whole new revenue stream for Twitter.

The twitter management team sees the acquisition providing a windfall of future cash flows and is also a defensive move such that Twitter can now manage the MoPub solution solely for its own benefit.

The soon to be public Twitter is hoping the $300+ million price tag was worth the investment.  In time, observers can pass their own judgment on the merits of the deal as Twitter begins to publish its financial results after it goes public.

Peer-to-Peer lending continues to gain traction


deadPeer-to-Peer  lending (“P2P”) connects borrowers with non-bank lenders at rates lower than typical bank or credit card rates. In May 2013 Google invested $125 million in Lending Club, a sign that the P2P market is gaining traction.  Banks may become challenged by these P2P networks.  It should be noted that Lending Club’s board includes Mary Meeker formerly of Morgan Stanley, John Mack former CEO of Morgan Stanley and Larry Summers former Treasury Secretary which makes you wonder how long before these platforms begin to look like traditional banks.

We expect the “P2P” market to evolve and expand more substantially to commercial lending.

See a Forbes article here: Article Link

Expertise on Tap


An interesting discussion on what it means to be an expert from the Harvard Business Review.  “Among the many qualities that distinguish successful leaders from millions of less-successful executives in the world is an awareness of the limits of their knowledge. They know what they know, they appreciate what they don’t know, and they have a healthy respect for what they don’t know they don’t know. In short, they have great meta-knowledge.”  Read More From Harvard Business Review (July 2012).