|Bid||29.00 x 800|
|Ask||0.00 x 800|
|Day's range||29.05 - 30.21|
|52-week range||25.61 - 34.76|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||29 Jan 2021 - 02 Feb 2021|
|Forward dividend & yield||0.48 (1.64%)|
|Ex-dividend date||23 Nov 2020|
|1y target est||33.27|
(Bloomberg) -- Chinese technology company Tencent Holdings Ltd. is a lead investor in a funding round that valued the online education startup Udemy Inc. at more than $3 billion, according to people familiar with the matter.Investors were also told by Udemy that the company could pursue an initial public offering next year, said the people, who asked not to be identified because the matter is private.Udemy said Wednesday that it has raised $50 million in a round valuing the company at $3.25 billion before the new investments. The San Francisco-based company named Learn Capital as one of the firms participating in the round. It didn’t disclose whether Tencent was an investor and it’s unclear how much Tencent contributed.Udemy had been looking to raise $100 million in new funding, according to a regulatory filing in Delaware.Beyond its core gaming and social media empire, Tencent invests in China and increasingly outside it, grooming upstarts in everything from supplying fresh vegetables to building electric vehicles.It has a range of U.S. investments from private ones in Epic Games Inc. and Reddit Inc. to public companies such as Warner Music Group Corp. and Activision Blizzard Inc. Although its super-app WeChat is the target of a U.S. ban halted by a court injunction, Tencent has yet to take much of a blow as the world’s two biggest economies clash, unlike Huawei Technologies Co. or TikTok’s parent ByteDance Ltd. In China, Tencent is facing a government clampdown to reign in big tech’s monopoly power.Online learning is one of the most hotly contested arenas in China, with incumbents like TAL Education Group going head to head against tech companies like ByteDance and NetEase Inc. Tencent has its own online learning platform in-house, while making bets in startups including Yuanfudao and VIPKid, both of which focus on after-school tutoring.A representative for Tencent declined to comment.Tencent’s largest investors include Naspers Ltd., the South African parent company of Prosus NV, which is also an Udemy backer. Udemy was valued at $2 billion in a funding round earlier this year. It’s also backed by Insight Partners and Stripes Group. With the new round, it’s one of the most valuable education technology companies.Udemy Chief Executive Officer Gregg Coccari said in an interview that the company doesn’t have a time frame in mind for an IPO.“We’re of course preparing the company for that eventuality if the board so chooses,” Coccari said. “We haven’t taken any steps.”Inbound InterestHe said Udemy has received inquiries from so-called blank-check companies, which allow a business to go public through a merger rather than an IPO.“It was all inbound interest, nothing that we were chasing at all,” Coccari said. “The board will consider any kind of options that we have in the future.”While declining to offer specifics, he said the company has hundreds of millions of dollars in revenue.Udemy and competitor Coursera Inc. are among the companies benefiting as the coronavirus pandemic prompts more people to experiment with virtual courses. Udemy offers professional, technical and personal development courses, as well as an array of classes as varied as cybersecurity and guitar.Rob Hutter, Learn Capital’s managing partner, said that Covid-19 dramatically boosted Udemy’s business.Computer Time“People are spending more time in front of their computers,” Hutter said. “They are utilizing that time to learn new skills and it has created a variety of new behaviors.”Udemy has enrolled 35 million students in more than 130,000 online courses, according to its website. The latest funding will help it expand to new markets. It has offices in Denver, Brazil, India, Ireland and Turkey as well as California.Coccari said the pandemic generated “five years of worth of growth in five months” for Udemy’s consumer business. Its enterprise business, which serves large companies, also grew this year, he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Shares of Big Hit Entertainment Co., the company behind South Korean boy band BTS, begin trading this week. A top-of-the-range IPO valuation of $4.2 billion(1) implies rock-star earnings multiples. Institutional investors have piled in anyway, displaying impressive confidence in the staying power of ultra-groomed youths and their obsessive followers.To live up to the hype, billionaire founder Bang Si-hyuk needs to turn a one-band wonder into something closer to Universal Music Group, adding artists and spreading their hits widely. An alternative would be to go further, surfing the Korean Wave to become a proxy for a booming cultural economy, expanding into the many other forms of Korean content already grabbing consumers’ attention: television drama, cinema, gaming and more.A mix of hip-hop and pop, with synchronized dance moves executed by perfectly chiseled starlets, the K-pop phenomenon already reaches far beyond Korea. Rapper Psy’s “Gangnam Style” made the horse-ride dance popular in 2012. Yet BTS, thanks to social media, is arguably the first band to really resonate with Western audiences. The floppy-haired outfit tackles issues like mental health and current affairs. A formidably active fan base means the band holds the Guinness World Record for Twitter engagement, based on average retweets.There’s little debate over whether BTS is a lucrative musical phenomenon — its latest album was the fourth in under two years to reach the top of the U.S. Billboard 200 chart, and the group’s first all-English single went straight to number one. Its live concert popularity isn’t far off Elton John’s, and remains undimmed by the pandemic: A streamed performance in June attracted a record 756,000 viewers from more than 100 countries.The bigger question is whether BTS’s manager is worth a celebrity price.Its dependence on the band strikes a dissonant note. While Big Hit has other idols, BTS accounted for almost 90% of sales in the first half. That’s uncomfortable, given questions over the members’ eventual absence for military service, which is compulsory for Korean males between 18 and 28. Or indeed the experience of rival agencies like YG Entertainment Inc. in 2019 — a year marred by suicides, sex and drug scandals in an industry that has long cultivated a demure image. Clean-cut BTS has committed no such transgressions. Still, even superstars have a lifespan. The seven-man group officially debuted in 2013. The Beatles, whose popularity is often a point of comparison, lasted less than a decade.Considering estimated 2020 net debt and annualized earnings before interest, tax, depreciation and amortization as provided in the listing prospectus, a debut price of 135,000 won ($117) per share puts the company’s enterprise value at more than 40 times this year’s Ebitda. That’s well above local rivals like SM Entertainment Co., JYP Entertainment Corp. and YG Entertainment, which trade at an average of closer to 22 times forecast Ebitda. It’s above Warner Music Group Corp. too, and suggests expectations of breakneck growth. The company’s comparisons to chat-app owner Kakao Corp. and tech giant Naver Corp., meanwhile, appear wishful at best.Part of the problem comes from the sheer difficulty of putting a price on a talent agency, as U.S. powerhouse Endeavor Group Holdings Inc. found out last year. There is biotech’s element of chance, the faddish buzz of fitness startup Peloton Interactive Inc., and, with a band like BTS, a touch of soccer clubs’ promise that loyal fans will stick with a successful house. It doesn’t help that the entertainment industry’s size and market power in South Korea discourage critical scrutiny.Once Covid-19 restrictions lift, Big Hit has good reason to believe that tours will prove money-spinners once more. It will need to move quickly to diversify while Bangtan Boys (to give BTS its full name) are on top, though. The company has already snapped up a rival label and fosters new artists, but barriers to entry remain relatively low. Another option is to do more to capitalize on the breakaway success of Korean drama and film too, on top of BTS’s cross-national appeal. The Korean Wave rose higher this year when “Parasite” became the first foreign-language film to win the Academy Award for best picture.It’s not without risk, given much of that dabbling so far has been outsourced. Yet mobile game developer Netmarble Corp. is a shareholder and, as Big Hit itself points out, its existing business is already about grabbing the attention of fickle, time-poor consumers. Absent that, this may be a one-hit wonder. (1) Based on fully diluted shares.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today we will run through one way of estimating the intrinsic value of Warner Music Group Corp. (NASDAQ:WMG) by taking...