Editor’s note: This article had made a mistake by initially stating that YuuZoo Corporation had no RTO documents to help investors better understand its business. The mistake has been corrected. The Fool regrets the error.
Singapore’s share market just got its first ever social media company this week in YuuZoo Corporation (SGX: AFC). The company became a listed entity by virtue of a reverse takeover (RTO) of W Corporation Ltd.
What is YuuZoo?
YuuZoo is a social media and e-commerce infrastructure company which currently has more than 42 million registered users in 164 countries. The company helps customers setup their own social media sites and integrate it with either existing social media platforms or the customers’ own eco-systems. For example, YuuZoo has been chosen by one of the largest churches in the world (with more than 50 million followers) to launch its own dedicated social network. YuZoo has also partnered with Miss Asia Pacific World to launch its own social network. According to Yuuzoo’s website, the company also considers itself to be a virtual shopping mall.
In an interview with the Wall Street Journal, Thomas Zilliacus, YuuZoo’s Chief Executive Officer, describes the company as a bespoke outlet where it can help brand owners create their own eco-systems; in comparison, a social media platform like Facebook is more of a “department store” where brand owners can only design their company’s pages according to Facebook’s specifications.
From the same Wall Street Journal interview, Mr. Zilliacus also stated that YuuZoo is already profitable, having clocked revenue of US$27.3 million in 2012 and a net profit of US$5.2 million in the same year.
Is YuuZoo worth a look?
The issue with a RTO is a lack of information. Without a listing prospectus to better understand the business of YuuZoo, investors only have very little data to work with in their attempt to make an informed decision. Even though YuuZoo became a listed entity through a RTO, it did publish a detailed document describing its business and financials for investors who are interested to know more about the company. In any case, there’s no harm in following along with the business developments of YuuZoo for investors who are interested in the social media space.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim does not own any companies mentioned.