Friday, October 8, 2010

Social Mobile Madness?: DeNA ngmoco Rumor

Yesterday's TechCrunch story about Japanese social mobile gaming powerhouse DeNA making a play for San Francisco smartphone games shop ngmoco, for over 400 milly (!), sent the buzzometer through the roof amongst mobile content peeps at XYZ & the Redwood Room (oh, I mean CTIA). Some were adamant that the deal was done, some were more skeptical, some were hoping the story would goose their stock price (it didn't). If this is true, the valuation is beyond super-frothy! My estimate is that ngmoco probably has revenue of around $10mil & net of around $2mil (maybe), which means DeNA would be paying more than 200x earnings. Why?... this would be like EA/Jamdat all over again. Who's advising these guys?... 'cause I definitely want some of whatever they're smoking & I think I'd be entitled to a few million yen for saving them a fortune with my secret insider brain knowledge that they could buy Glu Mobile (market cap $43mil), Digital Chocolate & the social platform of their choice for a fraction of that price. Oops!... well I guess they can send me one of those bean cake jelly gift boxes as a token of their appreciation.

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