Betting on a social media application company right now might not seem like a smart move – especially in Twitter’s environment. Nonetheless, DLD Ventures (part of Burda Digital) just pumped $5.6 mn into UberMedia’s coffers.
Was this a really a good play?
Obviously, time will tell, but when you get past the initial shock of investing in an ecosystem that Twitter seems committed to owning directly, UberMedia doesn’t look so bad. I’ve been an UberSocial user since it was UberTwitter, and despite having tried other apps, nothing is as effective for the BlackBerry. Looking beyond my own preference – doubtless necessary – UberMedia claims to account for 13 percent of all Twitter traffic and has a user base of more than 5 mn, which it accumulated in a little more than a year.
And this is where it gets really interesting.
Twitter seems to be acquisition-hungry. It also has an appetite for new features. Both are evident from recent developments, such as the TweetDeck acquisition and recently released search and photo functionality.
An acquisition exit would be a smart move for UberMedia, especially if the company could use its strength on the BlackBerry as a way to get Twitter’s attention (and possibly push the multiple higher). The influx of capital from DLD Ventures could help UberMedia firm up its strategy, take the application to the next level and expand its user base.
It looks to me like the infusion was a smart one, as long as UberMedia’s strategy is pointed toward becoming an attractive acquisition target in the near term.