A take on the ZYB-Vodafone deal

The Danish mobile social networking service ZYB has been acquired by Vodafone in a deal worth a reported € 31,5M.

It’s great news for the team behind and the people, who have put money into the company. What a great return. But what are the bigger implications in this deal?

The first thing that comes to my mind is that it shows that if you have a working product with end user traction thats unique enough, the big boys are still looking for opportunities to buy you out. ZYB has in a very clever way managed to transform itself from a service focusing on backup of SIM-card data to a full fledged mobile social network and created what I believe is a unique service along the way. That’s now being rewarded.

The other thing that has me wondering is the price of the acquisition. Yes, €31,5 M is a lot of money - especially since I understand its all cash - but still? For a unique service and with one of the giants as the buyer, this could send a signal that the golden days of mega valuations are over this time around. I don’t know if this is the case, it’s just a feeling right now.

As far as opportunities go, you could say that by having set the stage for other deals waiting to happen this acquisition should serve as an indication that many more deals are possible - and at much more sensible valuations than perhaps six months ago. Unless of course there’s a whole different reason for this valuation.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.