February 1, 2008 – stlplace

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Last Updated on February 5, 2008 by stlplace

Ballmer has been chasing Jerry Yang for a year, and today he ran out of patience. Interestingly enough, I learned it from CNBC first time (around 5:30 AM central time). Note, last time I watched early CNBC, it was Jan 22 global crash…so the lesson for me don’t get up too early 🙂

The desperation of Microsoft
After all these efforts, MSN search, MSN live space, blog, MSFT is still playing catch up with GOOG. Since it can not afford to buy GOOG, it is determined to get the No. 2 guy in web search, by paying more than 50% premium over yesterday’s YHOO closing price.

How Yahoo got here

Yucheng Tech’s POS revenue

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Last Updated on February 1, 2008 by stlplace

I am always interested in recurring revenue business, debit/credit card transaction fee is one. Yucheng Tech (YTEC), the smaller rival of Longtop (LFT), is entering POS business this year. According to my friend Nawar Alsaadi’s analysis (quoted below):

“POS Revenue projections

The company mentioned in an investor presentation in February 2007 that the average business processed on a POS machine in China is 200,000 USD…Assuming an average transaction cost of 1.5% charged by the bank, the average revenue per machine will be $3000, and if we assume that Yucheng is awarded a 3rd of the transaction cost, this would net the company $1000 in transaction revenue per year. Thus, based on the company’s expected rate of merchant sign up, the company could generate as much as $50 million dollar in recurring transaction revenue by the end of 2009 as they sign up over 50000 merchants on their network…”