The Investment Column: 365 Corporation
Friday 12 November 1999
365 Corporation has the right idea. Barriers to entry on the Internet are nil, so it aims to develop competitive advantage by having excellent content. 365 has already developed 14 sites, mainly on sporting themes but also catering for music fans and lonely hearts.
Unlike other net ventures, 365 also has profits, following its acquisition earlier this year of Symphony Telecommunications, a business telephony services provider. While that provides some cashflow, 365's directors are keen to generate some highly-rated paper to enable them to acquire expertise in overseas markets to help them expand further into Europe. The paper will also be deployed in the acquisition of other content providers and Internet sites with quality surfers.
But how valuable will 365's paper be? Cazenove's valuation of 365's Internet business ranges from pounds 68m to pounds 201m. Where exactly depends on whether you pick, say, trade sale comparisons or sales multiples as your valuation method. Pick a fair value of pounds 121m and throw in pounds 86m for 365's telephony, integration potential and cash and the group is worth pounds 206.9m. Durlacher, which owns 10 per cent of the group, is altogether more bullish. On a sum-of-the-parts assessment, 365 has a core value of pounds 301.7m.
The prospectus hedges its bets and settles on an offer range of 135p- 150p per share, valuing 365 at pounds 259.2m at the midprice content. Whatever the company is worth, the fact that the shares are being listed in London only suggests a degree on insulation from US tech stock's volatility. With 365's users currently doubling every three months, the shares are worth a punt.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 iPhone 5c to be discontinued, no iPhone 6c to replace it
- 5 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
The difference between a migrant and refugee, in one sentence
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...