Meebo, the site that lets users send instant messages from a single page — across various IM platforms — is trying to raise $25-$30 million at a nose-bleed valuation of between $200 million and $250 million, I’m hearing from multiple sources. This is quadruple its valuation from its previous round of between $60-$70 million last year, and a big bet that its fast-growing user base is worth something.
(Readers, let us know what you think in the poll, to the right)
Mountain View, Calif.- based Meebo has hired a San Francico bank, Montgomery & Co to shop the deal. We’ve heard that two, possibly three, larger strategic investors — and these may include Facebook and MySpace — have expressed interest, though things are moving quickly, and one of them may have backed off.
I’m quite ready to eat my hat, if this funding happens. I wrote last week that the market had changed considerably over the past few months, and that Meebo wouldn’t be able to raise money at the stratospheric rates it might have done last year — because of the evaporation of interest from hedge funds. That analysis hasn’t changed. But there’s apparently still interest from some strategic investors. If Meebo pulls this off, its a great story, an even greater one than Bebo selling itself to AOL last week for $850 million. Note: Bebo was represented by Montgomery & Co. rival bank Allen & Co., which also represents other consumer-facing startups like Digg and Slide.
However, the value is surprisingly high because Meebo is a mere messaging service that hasn’t proven yet that it can make good money. The site’s core service lets you chat across competing instant message services, including AIM, Gtalk, Yahoo Messenger and Microsoft messenger, but other companies also offer that service. The company is now starting to focus on making money. In the past year, it has started relationships with a number of music labels and other partners, and also works with video advertising service company VideoEgg. It’s hard to predict the value of Meebo’s business model, especially in the short-term where advertising and other forms of making money in social site like social networks — or Meebo — has come harder than some expected.
Of course, this also comes at a time when the consumer economy has taken a hit, resulting in even large banks like Bear Sterns getting sold for far less than their previous values. Some investors remain quite skeptical about Meebo.
On the other hand, Meebo has some things going for it. It has attracted 29 million monthly unique users worldwide. While other chat services abound, Meebo has done an especially good job at executing to make its service very simple to use. It has rolled out other compelling products too, such as Meebo rooms (like the one we embedded beneath the article), which has been growing quickly, as well as its smaller developer platform. In fact, Meebo won “best consumer startup” at The Crunchies award ceremony in January: An important factor was that its rooms grew to more than 20 million users since the service launched last May.
More generally, there may also be more competition — if not consolidation — among instant messaging services. We’ve heard that Facebook is working on its own IM service, we’ve also heard that Facebook has looked at buying AIM from AOL, although this sounds highly unlikely considering that Facebook likes to create products rather than buy them. And, now that AOL is integrating Bebo’s social network with AIM, this sounds even more ludicrous.
The banker, Montgomery, has requested that all offers be in by Wednesday, and has told investors it has several parties interested at a valuation of $200 million. We’ve heard different things about who is interested. We’ve heard that at least one, possibly two, of the strategic investors isn’t interested in sharing the investment, preferring instead to buy Meebo entirely. We haven’t confirmed that. Montgomery is reportedly holding out for a separate venture investor, in order to help set the price of the round, at which the strategic investor or investors would also invest.
Eric Eldon contributed to this article.
Tags: co:Meebo, inv:Montgomery-&-Co.11 Comments
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ze Mobile Phone said:
Agree.
No defensible IP. Reluctance to provide clear business model strategy. “Free” is not always the best way to go. Facebook could spend $5 million - get team of 10 developers in a room for 3 months and build the platform themselves - including the integration of Skype and QQ. I’m just not sure who would buy this company for such a high value even with 29 million uniques.
While I wish them all the best, I’m just not sure its feasible.
Ze
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Matthew Maroon said:
I sure hope that “It has attracted a whopping 29 monthly unique users worldwide.” was some sort of typo. Tech blogs really need copy editors.
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Eric Eldon said:
Yeah, Matthew Maroon, it was a typo. We’ve fixed. Our copy editor has kids, so she’s asleep at this hour.
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James Byers said:
Speaking of typos, the poll reads that Meebo is *raising* $250-300M, not valued at those numbers. That’s probably skewed the results rather badly.
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PJ Brunet said:
Just a few minutes ago I realized checking my incoming IM’s by Meebo is faster than Trillian. And I can exit Meebo just navigating to another URL.
I was browsing some stats yesterday and I think Meebo is getting more traction among Myspacers, maybe it’s the “rooms”.
I was on there last night, they had a little blog about SXSW that went on to explain how this “i has a cheezburger” craze started because of a Meebo exchange, you can embed a “cheezburger” into your chat with a special code. Sounds stupid but they are in touch with their users, unlike all the others: ICQ, Yahoo, AIM and MSN.
I also like the “desktop” themes they added.
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Shawn said:
Rooms are gay.
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Jeff Nolan said:
while the headline is indeed a sober comparison, the fact remains that Meebo won’t require the “up to $30 billion” in financing that the Fed guaranteed to JPM to finance less than liquid assets.
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Linda Grey said:
Meebo at $250? They’re not even profitable, a bunch of egotistical stanford kids selling something that’s worth maybe $30 million at most. Get a grip meebo…I see another dotcom bubble happening right before my eyes.
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JWooley said:
Meebo doesn’t have billion dollars of debts like B.S..Their site is very useful for millions of users with growing potential. No one took Google seriously when they first started and gengerated no income. Take B.S. assets - liabilities, throw in all wall street accounting loop holes then B.S. would probably be worth less than Meebo.I think Meebo also has a solid team behind it beside they are backed by some of Silicon Valley reputable VC’s.
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Alex said:
I don’t know, to me the value of Meebo looks somewhere in the region of $100,000. hoho. What is the business model? This is a free front end for popular instant messengers, nothing more. JWooley, Meebo is no Google. Google actually had their own technology!
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David Smith said:
I really do have faith in this. If you do too then imagine the possibilities!! Read this, follow the instructions word for word,
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comingAs Seen On OPRAH & 20/20 - TURN $5 into $24500! (or more, thats just what he made)
Earn money using PAYPAL as seen on Oprah & 20/20
THE PAYPAL $5 DOLLAR MONEY-MAKING METHOD
AS SEEN ON OPRAH EARN HUGE $$$$$$$$
Ok this is all you need:
1) An email address
2) A PayPal account
3) $5.00
THIS IS A 2007, CURRENT EMAIL LIST
?Ever since the internet became popular, the word “scam” has become a daily term. I have never once tried any money making “system” outside of this because of that very reason. However, after reading reports on the validity and reputation of this money making system (seen on Oprah,CNN, and other media forums) I decided to give this one a shot… Especially since the so called “risk” is only $5.00. I mean, for the chance, what a joke right? Anyway, only hours after implementing this exact system I about fell out of my chair as money ACTUALLY started rolling in. I couldn’t believe it and for that reason, I wrote this intro and became a believer in this system.?
-Dude who wrote this. (hey at least I?m not taking his credit)
WHAT IS IT?
The idea is that of a system that takes advantage of the power of
compounding. And in a big way, let me tell you. First and foremost
understand that there are countless spin-offs of this system that try to make a “quick buck” off of people. Long lists, the 5 & 10 dollar trees, the birthday systems, etc… Those spin-offs do make money because of the ease of implementation of this idea, but they do NOT use the compounding advantage. This system is THE legit and profitable one.
Here is how it works…
There is a list of 5 email addresses (you’ll see it as you read further). Each of these people has already taken part in this system. When someone new comes along (such as yourself) he/she removes #1 off of the list, moves the other four email addresses up one position (i.e. #5 goes to #4, #3 to #2, etc.), and places their PayPal email address in the #5 position. This process is what develops the power of compounding. The bottom line is this… Honesty and Integrity creates Profitability. Following
this EXACT process is what creates the money, and that is why this system has been raved about in the media. Altering the system creates weak results. The legality of this system comes from the idea that you are of course creating a mailing list, and a “service” is being provided (more on that later.) Now on to how your $5.00 creates BIG money…
INSTRUCTIONS:
STEP 1:The first thing to do is highlight and SAVE this entire post in word
or notepad on your computer so you can come back to it later.
After that, if you are not already a PayPal user you need to go to
the PayPal website at https://www.paypal.com/ and SIGN UP. If you want to be able to receive credit card payments from other people then you will need to sign up for a PREMIER or BUSINESS account (not just a PERSONAL account). This is highly recommended to allow others easy payment options. In order to place the initial $5 into your account, you will have to verify your bank account with PAYPAL (which may take a few
days). PAYPAL is 100% secure and is used by millions of people
worldwide.
STEP 2:Here is where the action occurs. The first thing to do is to send a
$1.00 payment to each of the 5 email addresses on the current list
from your PayPal account. To do this quickly and successfully, follow these simple steps:
1. Login to PayPal and click on the “Send Money” tab near the top of the screen
2. In the “Recipient’s Email” field enter the email address
3. In the “Amount” field enter “1″ (This is your $1.00 payment)
4. In the “Category” field select “Service” (Keeping it legal)
5. In the “Subject” field type “EMAIL LIST”, and in the “NOTE” field enter “PLEASE PUT ME ON YOUR EMAIL LIST”. By doing this, you are creating a service and maintaining the legality of the system by “paying” for the service.
6. Finally, click on the “Continue” button to complete the payment.
Repeat these steps for each of the 5 email addresses. That’s it! By
sending the $1.00 payment to each address, you are implementing the compounding POWER of the system. You will reap what you sow!
Here is the current e-mail list:
*************************************************
The email list:
1) lacid@charter.net,
2) afro1035@aim.com
3) lillied@charter.net
4) hatianpappy@yahoo.com
5) dtris12@aol.com************************************************
STEP 3:Now take the #1 email off of the list that you see above (from your
saved file), move the other addresses up (5 becomes 4, 3 becomes 2, etc.) and add YOUR email address (the one used for your PayPal account) as number 5 on the list. This is the only part of the document that should be changed. ** Make sure your email address is the one you have registered with PayPal **
STEP 4 post your amended article to at least 200 newsgroups or message
boards. Keep in mind that there are tens of thousands of groups online! All you need is 200, but remember the more you post the more money you make - as well as everyone else on the list! I’ve began to see money roll in before I even hit 100 posts, but try to hit around 200 to allow maximum exposure. Use Netscape, Internet Explorer, Firefox, Safari, or whatever your internet browser is to search for various news groups, on-line forums, message boards, bulletin boards, chat sites, discussions, discussion groups, on-line communities, etc.
For example?
log on to any search engine like yahoo.com or google.com and type in a subject like ‘MILLIONAIRE MESSAGE BOARD’, ‘MONEY MAKING DISCUSSIONS’, ‘MONEY MAKING FORUMS’, or ‘BUSINESS MESSAGE BOARD’, etc. You will find thousands and thousands of message boards. Click them one by one and you will find the option to post a new message. Fill in the subject which will be the header that everyone sees as they scroll through the list of postings in a particular group, and post the article with the NEW list of email addresses included. THAT’S IT!!! All you have to do is jump to different newsgroups and post away. After you get the hang of it, it will take about 30 seconds for each newsgroup.
HOW THE MONEY WORKS:
When you post 200 messages in various forums, it is estimated that at LEAST 15 people will respond and send you a $1.00 ($15.00). Those 15 will Post 200 Posts each and 225 people send you $1.00 ($225.00), etc. through 5 levels of email addresses. For comprehension purposes, here is an easy viewing chart:
1) 15(1) = 15 people ($1) = $15
2) 15(15) = 225 people ($1) = $225
3) 15(225) = 3375 people ($1) = $3375
4) 15(3375) = 50625 people ($1) = $50625
5) 15(50625) = 759375 people ($1) = $759375
As you can see, your $5.00 has multiplied exponentially. What other opportunity that is as simple as this can cash in the way this can?! I’m not going to say this is going to make everyone over $800,000, but within a few WEEKS you begin to see results, thanks to the speed of the internet!
When your name is no longer on the list, take the latest posting in
the newsgroups and begin the process again. Simply amazing…
Follow the system as described, and enjoy your PROFITS!!!
REMEMBER… HONESTY AND INTEGRITY = PROFITABILITY
YOUR NAME COULD CYCLE FOR A LONG TIME! THIS MAKES IT THE GIFT THAT
KEEPS ON GIVING.
This is excellent seed money to start or expand a business, buy your dream home, car and pay off whatever bills you may have. Good luck!
HOW TO POST TO NEWS GROUPS?
Use Netscape or Internet Explorer and try searching for various
newsgroups (on-line forums, message boards, chat sites, discussions.) Log on any search engine like yahoo.com, google.com, altavista.com, excite.com, etc., then search with the subject “millionaire message
board; or; money making message board; or; employment message board; or making discussions; or ”money making forum; or; business message board; etc.
You will find thousands & thousands of message boards.
Click on them one by one and you will find the option ‘post a new message’. Then Post this article as a ‘new message’ by highlighting the text of this letter and selecting copy then paste from the edit menu. Fill in the Subject, this will be the header that everyone sees as they scroll through the list of postings in a particular group, click the post message button. You’re done with your first one! It only takes about 60 seconds to complete postings on message boards after you catch on.when you get the money please give 25% to charity please.
REMEMBER, THE MORE NEWSGROUPS YOU POST IN, THE MORE MONEY YOU WILL MAKE!!
GOOD LUCK!!!! God Bless “Pay It Forward”Don’t let your dream ride pass you by. Make it a reality with Yahoo! Autos.
29 Trackbacks
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The Nontech Crash is Sweet Revenge said:
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Ping — Alexander Ljung said:
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a seattle startup » Blog Archive » Best headline of the day… said:
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