Buy talent

This text is published by the Tribune newspaper Cinco Dias today and can be read in pdf here

The news these days is the announced purchase of 85% of Tuenti by Telefonica, the 70 million disbursed and conditions agreed in the sale, and the output of the company's current president Tuenti, Bernardo Hernández. It is an interesting move that will strengthen the position of Telefónica in the market for mobile internet among young people, with annual growth of 35%.

It is interesting to analyze the role in Spain's other big operators such as Orange and Vodafone, "neither are nor were they expected, still trying to capitalize on their balance sheets their operator licenses without clear plans and investments, thus allowing them deal with Telefonica in Spain. While Telefonica lost years of time (and a huge amount of money) to launch a product without meaning, that was born late, ill-conceived and died, as his social network to try Ketek market position in social networks, these operators could - by a small amount of money, invest and buy a stake in Tuenti when the company conducted a road show in search of investment.

They've had several years to curb that Telefonica had just landed in Tuenti and therefore have access to the largest database of young people in Spain. Personally I think it is a startup Tuenti of great merit, its leaders have shown enormous talent and vision, but technically it is light years ahead of Facebook and its medium-term market is not going through to compete with the American giant, but by seeking their own personality and internationalize. This operation is very cheap for a company like Telefónica.

Reach 8 million people permanently, and stop the growth of competition (Tuenti already had agreements with Vodafone to send SMS now likely to be diluted), for only EUR 70 million strikes me as cheap. But for me it is particularly significant that the agreement has been complied with 15% of shares held by the founders of Tuenti, a shift in policy from a company too used to land like a bull in a china shop in their absorption.

It Tuenti team which has shown talent and know-how necessary, should be the ones to direct the course of the company. They have learned something over the years. Telefónica buys a company not only have not bought a social network, it really is purchased and integrated talent.

Tags: Bernardo Hernández , five days , Investments , Social Networks , Telefonica , tuenti