Ashley Madison: rapid development but there was none to investment affair dating site

cloud network hunting note: why a website, smooth operation, stable income, development is rapid, turned off many investors? The problem is that this is an affair for business, “the social network banner subscriptions make money for fake user information website. A listed company in London for the plan, are facing unexpected obstacles.

some news story look like a joke, but we still have to write these articles. When Ashley Madison has announced plans to market in London, everywhere filled with “a critique of the seemingly affair dating site actually innuendo Wall Street bankers…” the cheerful atmosphere.

Ashley Madison did not conceal his is an affair dating sites, but will it as a selling point for advertising. The owner of the website is Toronto Avid Life Media company, the company also owns and dating sites, etc. According to Bloomberg (Bloomberg) and the Financial Times (Financial Times), it is planning on the London stock exchange or the junior Market (AIM, namely, the Alternative Investment Market).

Avid Life has a lot of investors like traits: it is a large-scale social media, over the years has been a steady income, is in the process of the overseas market. Forbes said in a brief introduction to 2014 Avid Life income grew by 45%, to $115 million, pre-tax profit of $55 million.

the beginning of the introduction is Ashley Madison’s CEO said: “if you were asked what I do on the plane, I don’t usually truthfully.” It was he was doing these things for Avid Life listed. Though morality is very elusive thing, but the company is a moral bottom line. Investors tend to care more about what a company’s bottom line is, rather than on the bottom line on what they can do. For a website to an affair is the management project, their bottom line had fallen to the east African rift valley below.

Avid Life from long ago began to seek a listing. Five years ago, it arranged a complex reverse takeover, hope in the Canadian listed on a stock exchange, but observers say, this project dead. Two years ago, another report pointed out that New York bankers thought it will be listed in the us, but now it seems that the company has been listed will Europe as the best location.

Avid Life a general manager, told the financial times, they consider listing in London because “Europe on affairs have a more freewheeling attitude”. Apart from this “British culture is equivalent to the European culture”, Avid Life there are still some obstacles to overcome before the public. Which bank is willing to issue securities to them? Which analysts would like to recommend the stock? What investors willing to face the public scolding for it? So far, private investors are anonymous Avid Life.

Ashley Madison in South Korea is disabled, then the company to court, the government ignored and has been for decades of banning adultery won the case, and in Singapore it didn’t so lucky. Although it also in some cable television broadcast advertisement, but the new advertising plans were rejected, including one in the super bowl ads and provide the sponsorship program.

the prospectus what due diligence will appear in the content is still unknown. Since its creation in 2001, Ashley Madison has 31 million users, that year in the fourth quarter of 6.8 million user login web site. The Tinder 40 million monthly active users, while Ashley Madison might also want to borrow it momentum for listing.

but Ashley Madison isn’t and Tinder the same type of social networking, is more of a subscription service. Forbes said in the introduction of the revenue mainly comes from male users of this site, they will spend $200 to $200 a year of subscription fees to contact the female users. Last year, to $250 per user, Ashley Madison has about 460000 customers. Although companies often preached to say the number of users has more than 3000, but in fact, income or from less than 2% of the part.

male users to communicate with female users pay, while women in the number of active users is unclear. Random search for Ashley Madison user complaints, is about the false information, and delete data spend $20. In 2012, Ashley Madison is a Brazilian workers to “input too many false information so that the wrist injury,” said to court, and then Ashley Madison for counterclaim, these last two cases were dismissed.

these shenanigans are even more difficult for Avid Life appear on the market. Ashley Madison did not think that it is so brazenly defended his controversial business model, not only the general public disdain for it, equity investors don’t want to wade this muddy water. Facing private market plenty of cash, and are in urgent need of profitable technology company listed on the stock market, Ashley Madison will go from here?