Think Tank: our take on who's doing what to whom and whether it's likely to add value.
End of the road for Bebo?
Social network sites have struggled to convert their widespread appeal into profit for their owners. Bebo seems set to be further confirmation of this.Since its acquisition by AOL two years ago, it's struggled to deliver a strategy designed to broaden its appeal to an older age segment. Its core teenage users have reacted against the influx of a demographic they appear to want to avoid. This is hardly surprising: which self-respecting teenager actually chooses to shop in the same shops, listen to the same music or dress like their parents?
AOL have made the age old mistake of diluting Bebo's brand and core audience and succeeded in thowing their baby out with the bathwater. AOL's strategy made little sense. A quick look at the Bebo user demographic should have demonstrated a clear point of difference between Bebo and Facebook for example. Far better for Bebo to have focussed its attention on understanding their core audience's interests and delivering content and brand extensions to match.
Bebo managed to move from a near 'Blue Ocean' value proposition into a red sea competition with facebook et al. Quite an achievement.
Russian rush to Privatisation
It's predicted that 500 Russian state-owned business will be offered either wholly for sale or as substantial equity stakes. Port locations on the Black Sea and Baltic as well as electricty generator TGK-5 as well as at least three airports are included. In the rush for cash the pressure is on The Kremlin and its advisors to get the valuations right this time to ensure maximum value for the Russian Treasury. Perhaps as important is scrutinising the credentials of the bidders to ensure long term stability for the country's infrastructure.
UK Debt Concern
Ratings agency Fitch has warned that the UK and France are in danger of losing their Triple A status. With public debt forecast to be 90% of GDP by 2011 this would replicate Japan's loss of their top rating when they broke 80%. The effects on UK exports would be far-reaching.
Private Equity's Track Record
Interesting comments from Simon Walker, CEO of the British PE/VC association claiming that of the 1,735 London IPO's between '95 - '06 (raising £70BN) PE/VC accounted for a fifth raising a disproportionate 27% of total capital. They must be adding value somewhere.
Footballs' Own Goal
With Portsmouth in administration, Manchester United and most other leading clubs hugely over-leveraged or dependent on a single benefactor, the UK premier league seems ready for collapse. Victims of poor financial management, allegations of corruption and unaffordable wage bills, and the premier league is a case study in how to construct an unsustainable business model. Hold off that season ticket purchase. Dumb move. Steer clear of club stocks.
Social network sites have struggled to convert their widespread appeal into profit for their owners. Bebo seems set to be further confirmation of this.Since its acquisition by AOL two years ago, it's struggled to deliver a strategy designed to broaden its appeal to an older age segment. Its core teenage users have reacted against the influx of a demographic they appear to want to avoid. This is hardly surprising: which self-respecting teenager actually chooses to shop in the same shops, listen to the same music or dress like their parents?
AOL have made the age old mistake of diluting Bebo's brand and core audience and succeeded in thowing their baby out with the bathwater. AOL's strategy made little sense. A quick look at the Bebo user demographic should have demonstrated a clear point of difference between Bebo and Facebook for example. Far better for Bebo to have focussed its attention on understanding their core audience's interests and delivering content and brand extensions to match.
Bebo managed to move from a near 'Blue Ocean' value proposition into a red sea competition with facebook et al. Quite an achievement.
Russian rush to Privatisation
It's predicted that 500 Russian state-owned business will be offered either wholly for sale or as substantial equity stakes. Port locations on the Black Sea and Baltic as well as electricty generator TGK-5 as well as at least three airports are included. In the rush for cash the pressure is on The Kremlin and its advisors to get the valuations right this time to ensure maximum value for the Russian Treasury. Perhaps as important is scrutinising the credentials of the bidders to ensure long term stability for the country's infrastructure.
UK Debt Concern
Ratings agency Fitch has warned that the UK and France are in danger of losing their Triple A status. With public debt forecast to be 90% of GDP by 2011 this would replicate Japan's loss of their top rating when they broke 80%. The effects on UK exports would be far-reaching.
Private Equity's Track Record
Interesting comments from Simon Walker, CEO of the British PE/VC association claiming that of the 1,735 London IPO's between '95 - '06 (raising £70BN) PE/VC accounted for a fifth raising a disproportionate 27% of total capital. They must be adding value somewhere.
Footballs' Own Goal
With Portsmouth in administration, Manchester United and most other leading clubs hugely over-leveraged or dependent on a single benefactor, the UK premier league seems ready for collapse. Victims of poor financial management, allegations of corruption and unaffordable wage bills, and the premier league is a case study in how to construct an unsustainable business model. Hold off that season ticket purchase. Dumb move. Steer clear of club stocks.
wave strategic consulting
