PIVOT FROM ASIA: THE LINE CORP - IPO AS A MICRO-CASE Presented by Ms. Ellen Kountz & M. Hermann Djoumessi 17 February 2017 Bloomberg Conference ...
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PIVOT FROM ASIA: THE LINE CORP. IPO AS A MICRO-CASE Presented by Ms. Ellen Kountz & M. Hermann Djoumessi 17 February 2017 Bloomberg Conference, Paris, France
BLOOMBERG NEWS: FEBRUARY 17, 2020
RECORD-BREAKING BUYOUT
OF FACEBOOK BY LINE
CORP.!
FINANCE STUDENTS WORLDWIDE MUST ALWAYS
BE CONFRONTED WITH THE QUESTION….
• Do you believe markets are EFFICIENT?
• If YES, you believe in PASSIVE MANAGEMENT STYLE
• If NO, you belive in ACTIVE MANAGEMENT STYLE
OF ALL THE COMPANIES TO STUDY, WHY LINE CORP.? • The GAFA are over-researched • The Pan-Asian space is under-reported • All students can immediately relate to OWNING a smartphone and USING a Messaging App
CASE INTRODUCTION:
COMPELLING, INTERDISCIPLINARY,
BLENDED-LEARNING
On July 13, 2016, market analyst Reiko Shofu of “Sensing
Asia” stated that LINE (ticker symbol: LN) “is overrated.
Their bottom line commercial viability is indeed in
question”. Nevertheless, LINE App is the largest tech IPO
of the year, raising over $1 billion, 20% of the firm’s value,
aggressively priced (increasing overall market
capitalization expectations from $5 billion to $6 billion
from June to July 2016) showing there is still room for new
entrants in the global messaging market.
CASE STRUCTURE CONTENT &
SEQUENCING
LINE App at a Glance
on-line & off-line strategy
elaborate and extensive sticker selection
Signficant market penetration in Japan, Taiwan, Indonesia and Thailand
Revenue breakdown : 22% sale of cartoon stickers, 35% advertising, 35% from gaming
Competitors include Facebook (WhatsApp), Twitter (Twitter), Microscoft (Skype), Tencent (WeChat),
Rakuten (Viber
Future growth : taxi booking, music streaming, mobile money
sources: Reuters on-line, June 10, 2016, WSJ on-line June 10, 2016 & Al-Jazeera YouTube July 14, 2016
LINE App Timeline
LINE App first launched in Japan in March 2011
LINE App reahes 100 million users in Japan in September 2012
Primary Market
LINE App reaches 200 million usersin Japan, now Japan's largest social network, in March 2013
LINE App tops 550 million users in 6 countries, with 150 million active accounts, in October 2014
Grey Market LINE App CEO Takeshi dezawa announces dual listing IPO in January 2016
Secondary Market LINE App successfully lists 22 million shares on NYSE on July 14, 2016 and 13 million shares on TSE on July 15, 2016
BLOOM TAXONOMY FRAMEWORK
• Discussion Chunks & Decision Points
Bloom Taxonomy applied to LINE App Case for 1st year MSc students
Knowledge What is the market capitalization post-IPO? Did the Price / Earning ratio increase or decrease, why?
Can you explain what is happening when the initial offering is oversubscribed? The motives and
Comprehension consequences of a dual listing?
How would you organize information about shares denominated in two different currencies in a
Application diversified portfolio of equity assets?
Why do you think the firm listed in two markets and what conclusions can you draw from this
Analysis strategic option?
DEPLOYING THE CASE ACROSS A RANGE
OF ACADEMIC FIELDS
• Investor Relations (M2)
• Social Media & Networking (BBA)
• Corporate Strategy (M2 & MBA)
• Cross-Border Marketing (M2 & MBA)
• …in the future: Fintech, Electronic Money &
Financial Disintermediation
• Excel for Finance (BBA & M1)
DEMO ON BLOOMBERG TERMINAL
INVESTOR RELATIONS CLASS: STUDENT OUTPUT AND
ASSESSMENT
Anam, from Pakistan,
INSEEC Grande Ecole student Oskar, from Sweden,
Erasmus exchange student
Faniry, from Madagascar and Kelly,from Belgium
Erasmus exchange studentsINVESTOR RELATIONS CLASS: STUDENT
OUTPUT AND ASSESSMENT
« I would have double-checked the numbers and figures
being presented myself…I would have more skepticism
about sources… »
« Most of the LINE presentations were about popularity:
meaning the cultural impact, with the number of users, the
services, the number of countries present. In a real-life situation,
to suggest to invest or not in LINE I would have focused on the
financial aspect… »#EXCELADDICTS FB PAGE & TOSA ASSESSMENT
PROFESSORS AT THE FOREFRONT OF BMC
DELIVERING BLENDED LEARNING SOLUTIONS IN ENGLISH THROUGHOUT FRANCE
HERMANN DJOUMESSI, MA.
FINTECH Social Media Consultant & Crypto
Analyst:
• Master 1 IHECS (Brussels, Belgium)
• Master 2 London Metropolitan University (London,
UK)
• Hootsuite Certified
• EXCEL TOSA Expert
• Bloomberg Market Concepts Certified• WEBSITE: www.admpawards.biz
• ++ Please visit our Sister page, for discussions and exchanges on ALL START-UPS in
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• @BorderlineTVTHANKS FOR YOUR ATTENTION: DJHERMANN@HOTMAIL.COM CONTACT@ELLENKOUNTZ.COM
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