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Yahoo Shares Drop, Valuation Still In Focus.
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So while WhatsApp claims an incredible 700 million monthly active users and Snapchat has a jaw-dropping valuation pre-monetization, Livingston counters with research that hint that Kik has higher user numbers and better engagement in the US.
Both buyers and sellers appear to be taking a deep breath, in anticipation of more bad news to come about dropping valuations and tightening credit.
While economies like Greece and Italy would love to have a currency that could drop, dropping valuations are much trickier for emerging markets to manage and can do serious damage.Capital flight can feed on itself.
Dropping Valuations.
While firms talk about a downturn, and dropping valuations, it isn't anywhere close to what struck the market around 2001 and 2002, Kopelman said.
The drop in valuation tracks the wider market, where Google's share price has dropped over a third in the downturn.
"Somebody is paying for that drop in valuation," said Maarten Hooft, managing partner at Quest Venture Partners, "and I assume it's going to be the common shareholders rather than the preferred, meaning that that common shareholders will get diluted to pay back the preferred".
The new round also recapitalizes the company – it will wash out old investors and drop the valuation substantially.
A Wall Street Journal article said capital was drying up for the earliest-stage start-ups, leading to a major drop in valuations and leading some start-ups to scramble for bridge financing.
Inter, who had made concerted efforts to secure the player last summer, were under the impression a buyout clause in the Brazilian's contract drops his valuation after the tournament in Japan to around £12m.
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