Group buying website, Cudo, is on the market for over $60 million less than one year after it was launched by Nine Entertainment Co and Microsoft for the initial amount of $800,000.
The website, which has supposedly generated profits of more than $500,000 per month for the Nine/Microsoft partnership, is reported to have gathered interest from American group buying sites Groupon and Living Social, and the Seven West Media-Yahoo! joint venture, Yahoo!7.
The move comes as the partnership also reportedly plans to slash its 35% stake in the online comparison website, iSelect, which is valued at more than $500m.
Online retail models now come in all shapes and sizes in the modern global village, especially against weaker dollar economies. Media giants like Nine/Microsoft look to dominate the digital space and own the platforms, but when will traditional retailers innovate to move beyond the simple product transaction and develop their own online shopping model to protect their market share of the consumers wallet?
I wonder if the value of online sites such as Cudo is sustainable? Are we heading for a "social media bust", similar to the .com bust we saw in the 90's?
ReplyDeleteBut you are right, in the meantime, traditional retailers are suffering if they don't make the move online to compete with group buying sites such as Cudo and Groupon.
I haven't used any of these group buying sites before, and haven't really looked at them too much. I may be a little old school here but i just don't like the idea of buying something that may not have a guarantee etc. But as you and Wags said, normal retailers will have to move online, and we are seeing this all around the world.
ReplyDeleteRoss