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JAJAH IPO on the horizon?

Things are getting a little frothy for JAJAH on the investment front.  With investments from Intel Capital and Deutsche Telekom, they're flush with capital.  Scanning the blogs yesterday, I came across this piece from Markus Göbel highlighting that Swiss investment firm Qino Flagship has increased their investment in JAJAH by another $1 million as well.  Most interesting was the quoted research from Austrian investment firm RRS Capital Strategies valuing JAJAH at $2.9 billion, based on comparatives with Skype at the time of the EBay acquisition of Skype.  That caused me to raise my eyebrows, I admit.

According to Google's mangled translation of the piece that Markus originally quoted:

RRS calculated now on basis of the user data and that multiple, to which the VoIP offerer Skype at the end of on of 2005 was sold ebay, for one fair VALUE of approximately 2.9 billion dollar for jajah.

It sure would be interesting to know how RRS arrived at this figure, given how different the companies are.  For example:

  • Skype has 10's of millions of free users who never pay for anything.  Every JAJAH user is a paying customer, even if they don't pay a lot.   JAJAH ought to be much more profitable than Skype on a per user basis. 
  • Skype makes a significant amount of revenue from royalties on hardware devices that incorporate Skype.  JAJAH has no such play, as Aswath Rao pointed out yesterday.

Even so, co-Founder Daniel Mattes claims the company is on a steep revenue ramp, and would be profitable today if they cut back their marketing.  He is even talking about an IPO. That would certainly turn heads, were it to occur.

{ 7 comments… add one }

  • tim June 21, 2007, 5:28 am

    This is making me laugh. The day the Google CEO lands one of his many planes in Salzburg, which is not only a beautiful city but – incidentally – also the home town of Jajah founder Roman Scharf, an obscure evaluation surfaces. Of all PR stunts this has to be one of the most entertaining ones. I love it. RRS (?) takes the Skype acquisition sum, chucks in the userbase and the Jajah userbase, mixes in a few quotes and we have twopointnine billion.

    Is it sunny in Salzburg?

    It must be!

  • luca June 21, 2007, 6:12 am

    Alec,
    what you said about Jajah's users is not totally correct. With their Free Global Calling plan, there are a lot of users that are not paying one single cent. Moreover, I know that many people registered new accounts for parents and friends just to call them for free. So, I believe that there are many many users that are using it without paying anything and there are users that are registered to Jajah just to let others call them for free.

  • Alec June 21, 2007, 7:12 am

    Luca — correct me if I am wrong, but once you have used your initial free minutes, you have to register, and then put some money on your account, no? I am not saying that people don't get lots of free calls, but I think you end up giving some money to Jajah to get started. Or is there no requirement to put money in the account? It's been such a long time since I signed up.

  • Moshe Maeir June 21, 2007, 2:07 pm

    Alec, It is all a game and Jajah seems to be playing it like a pro. We all know that there is no special technology or service here, the same is been done by tens of other companies, BUT no one is telling the story like Jajah.

    At the end of the day it is all hype, BS and perceptions, but that is what the consumer business is all about :-)

  • Markus Goebel June 22, 2007, 12:26 am

    Tim:

    The "obscure evaluation" came out already the 16th of may 2007. Only that nobody cared, because the news was in German. Read the date on top of the page:
    http://www.boerse-express.com/cgi-bin/page.pl?id=

    If this is a PR stunt it's developing rather slowly.

  • QFU June 22, 2007, 1:02 am

    Nobody … The market seemd to have cared a lot since then …
    http://www.boerse-berlin.de/stocks/snapshot.html?… http://www.be24.at/blog/entry/6731

    And it cares today …

    … the market is usually right isn't it ?

  • tim June 25, 2007, 1:56 am

    Markus:

    Thanks Markus, I saw that, and I realized that the evalution (I won't call it "obscure" anymore, I am tempted to call it "standing on wobbly legs") has been around for a while. It just re-surfaced on Googleplaneday. My amusement stems from the HOW they evaluated it.

    Cheers for the snippet, Markus. Keep 'em coming.

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