Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

It was reported in numerous press which mentioned that Facebook tried to acquire SNOW from <a href="https://www.smartkarma.com/entities/16029" target="_blank" data-smartkarma-citation="entities:16029:1">Naver Corp (035420 KS)</a> this past summer. A few years ago, Facebook tried to acquire Snapchat as well, which did not materialize. According to Naver, it has received several offers to buy SNOW, without specifying their names. SNOW has been surging in popularity in Korea, Japan, and China. As Snapchat gets ready for an IPO in 1H17, SNOW is also likely to share the spotlight as the biggest competitor to…

It was reported in numerous press which mentioned that Facebook tried to acquire SNOW from Naver Corp (035420 KS) this past summer. A few years ago, Facebook tried to acquire Snapchat as well, which did not materialize. According to Naver, it has received several offers to buy SNOW, without specifying their names. SNOW has been surging in popularity in Korea, Japan, and China. As Snapchat gets ready for an IPO in 1H17, SNOW is also likely to share the spotlight as the biggest competitor to…

Facebook Tried to Acquire SNOW & Naver Founder Lee Hae Jin's Next Moves

It was just reported that Snap Inc. (parent of Snapchat) is preparing for an IPO in 1H17, valuing the company at US$25 billion or more (WSJ, CNBC). This is faster than what the market anticipated. We believe this accelerated attempt to IPO Snap Inc. is positive to SNOW, Naver (75% owner of SNOW) and LINE (25% owner of SNOW), because it will result in a concrete public market value of Snapchat which could raise valuation profile of SNOW.  (See our report <a href="https://www.smartkarma.com/insights/snow-asia-s-snapchat" target="_blank" data-smartkarma-citation="insights:5000">SNOW - Asia’s Snapchat</a>. The timeframe of…

It was just reported that Snap Inc. (parent of Snapchat) is preparing for an IPO in 1H17, valuing the company at US$25 billion or more (WSJ, CNBC). This is faster than what the market anticipated. We believe this accelerated attempt to IPO Snap Inc. is positive to SNOW, Naver (75% owner of SNOW) and LINE (25% owner of SNOW), because it will result in a concrete public market value of Snapchat which could raise valuation profile of SNOW.  (See our report SNOW - Asia’s Snapchat. The timeframe of…

Snapchat Parent Is Preparing for an IPO in 1H17 - Impact on SNOW, Naver, & LINE

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It was reported today that <a href="https://www.smartkarma.com/entities/22772" target="_blank" data-smartkarma-citation="entities:22772:1">LINE Corp (3938 JP)</a> will buy a 25% stake in SNOW for about 50 billion won (US$45 million). SNOW is a wholly owned company of <a href="https://www.smartkarma.com/entities/16029" target="_blank" data-smartkarma-citation="entities:16029:1">Naver Corp (035420 KS)</a>. This would put the private market value of SNOW at around US$180 million. Post this transaction, Naver has the remaining 75% stake in SNOW. We continue to have a positive view on LINE Corp. It is interesting how SNOW chose to receive its funding from Line Corp, instead of from Naver directly. Regardless, the amount is not…</li></ul>


It was reported today that LINE Corp (3938 JP) will buy a 25% stake in SNOW for about 50 billion won (US$45 million). SNOW is a wholly owned company of Naver Corp (035420 KS). This would put the private market value of SNOW at around US$180 million. Post this transaction, Naver has the remaining 75% stake in SNOW. We continue to have a positive view on LINE Corp. It is interesting how SNOW chose to receive its funding from Line Corp, instead of from Naver directly. Regardless, the amount is not…

Founder and CEO, Europacifica Consulting

Naomi Fink

Founder and CEO

Europacifica Consulting

Macroeconomics

The under-performance of Japan's non-IT sector was our focus last time (see <a href="https://www.smartkarma.com/insights/japan-non-it-industries-overcoming-deflation-not-enough" target="_blank" data-smartkarma-citation="insights:4491">Japan Non-IT Industries: Overcoming Deflation Not Enough</a> ), where we demonstrated why overcoming deflation alone will not resolve Japan's economic problems.  We observed clear out-performance of the "deflationary" IT vs non-IT sector in terms of productivity.  We then examined the role of Investment-Specific Technology (relative capital vs consumer goods deflation) in productivity growth and found it responsible for…

The under-performance of Japan's non-IT sector was our focus last time (see Japan Non-IT Industries: Overcoming Deflation Not Enough ), where we demonstrated why overcoming deflation alone will not resolve Japan's economic problems.  We observed clear out-performance of the "deflationary" IT vs non-IT sector in terms of productivity.  We then examined the role of Investment-Specific Technology (relative capital vs consumer goods deflation) in productivity growth and found it responsible for…

Overcoming Deflation Is Not Enough Part II: Japanese Services

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

We see LINE’s potential in Japan, Taiwan and Thailand markets has been priced in the current market price, and the bigger success will largely depend on its overseas penetration in Indonesia.We think the short-term growth driver to be performance ads, but the uncertainty of mid- to long-term growth drivers is very high.Analysts: Marie Sun &amp; Dan Baker

We see LINE’s potential in Japan, Taiwan and Thailand markets has been priced in the current market price, and the bigger success will largely depend on its overseas penetration in Indonesia.We think the short-term growth driver to be performance ads, but the uncertainty of mid- to long-term growth drivers is very high.Analysts: Marie Sun &amp; Dan Baker

LINE Is Riding on the Mobile Internet Wave, but the Uncertainty of Overseas Penetration Is Very High

Japan

A Holdings Corporation develops and operates the LINE application for smartphones. The Company offers games distribution, music distribution, advertisements, and other services. A Holdings serves clients across worldwide.

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A Holdings (LN US)

Facebook Tried to Acquire SNOW & Naver Founder Lee Hae Jin's Next Moves

It was reported in numerous press which mentioned that Facebook tried to acquire SNOW from Naver Corp (035420 KS) this past summer. A few years...

Douglas Kim

Snapchat Parent Is Preparing for an IPO in 1H17 - Impact on SNOW, Naver, & LINE

It was just reported that Snap Inc. (parent of Snapchat) is preparing for an IPO in 1H17, valuing the company at US$25 billion or more (WSJ, CNBC)....

Douglas Kim

LINE Buys a 25% Stake in SNOW

It was reported today that LINE Corp (3938 JP) will buy a 25% stake in SNOW for about 50 billion won (US$45 million). SNOW is a wholly owned...

Douglas Kim

Overcoming Deflation Is Not Enough Part II: Japanese Services

The under-performance of Japan's non-IT sector was our focus last time (see Japan Non-IT Industries: Overcoming Deflation Not Enough ), where we...

Naomi Fink

LINE Is Riding on the Mobile Internet Wave, but the Uncertainty of Overseas Penetration Is Very High

We see LINE’s potential in Japan, Taiwan and Thailand markets has been priced in the current market price, and the bigger success will largely...

Morningstar, Inc.

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