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> This seems like a solution to Telegram's cashflow problem - doesn't look like it has much runway left. There’s a lot to unpack here. Telegram has plenty of r

by Shank 5y ago

> This seems like a solution to Telegram's cashflow problem - doesn't look like it has much runway left. There’s a lot to unpack here. Telegram has plenty of runway left, probably. Pavel Durov is not strapped for cash. That’s just a fact. They’ve been pushing out regular updates with features and other development work that could’ve easily been delayed for the ad platform if it was a priority. They’ve actually deployed bandwidth intense things like video calls, too, which ostensibly are lower priority. What this does to me is signal that Telegram wants to engage with serious advertisers to start with. Because the content is injected into channels, of which there are many, it likely is easier to abuse than other networks. So the solution is to make the barrier to entry sufficiently great that only serious advertisers will buy in. So, I’m less inclined to say they’re in need of cash flow than they are wishing to finally make money, and not do so with low quality content.

capableweb 5y ago
> Pavel Durov is not strapped for cash. That’s just a fact. I love Telegram over anything else like others, but I don't think you can say "that's just a fact" unless Durov's finances are public, which as far as I know, they aren't. So yeah, probably he isn't strapped for cash, but that's not a fact, it's a guess.
- captn3m0 5y ago
  Forbes quotes his net worth at $17B, the vast majority of which comes from Telegram ownership. >[..] his wealth increased from $3.4 billion in 2020 to $17.2 billion in 2021. The wealth of Telegram founder increased exponentially recently after the app became popular.
  - capableweb 5y ago
    > Forbes Forbes is also estimating (fancy guessing), doesn't make it into a fact. > net worth Also not cash, which would be needed to fund Telegram > vast majority of which comes from Telegram ownership Also means you wouldn't be able to use that net worth for funding Telegram, as that's where the net worth comes from anyway.
captn3m0 5y ago
From earlier this year, WSJ reported[0] telegram raised debt finance, and needed $700M, out of which 500M was just to return to TON investors. The article also quotes Durov as claiming "A project of our size needs at least a few hundred million dollars per year to keep going". >To pay the bills, Mr. Durov is issuing investors $1 billion to $1.5 billion of company debt, with the promise of discounted equity if the company eventually goes public, the people briefed on the plans said. >To repay its creditors, Telegram is selling five-year bonds that pay roughly 7% or 8% a year Durov is rich, but he's not going to spend all his fortune on running Telegram and re-paying these investors. He's also refused to raise money via equity in telegram, so advertising is the only way to keep the lights on telegram. [0]: https://archive.md/mGtgp https://archive.md/mGtgp

by Shank 5y ago

capableweb 5y ago

> Pavel Durov is not strapped for cash. That’s just a fact. I love Telegram over anything else like others, but I don't think you can say "that's just a fact" unless Durov's finances are public, which as far as I know, they aren't. So yeah, probably he isn't strapped for cash, but that's not a fact, it's a guess.

captn3m0 5y ago
Forbes quotes his net worth at $17B, the vast majority of which comes from Telegram ownership. >[..] his wealth increased from $3.4 billion in 2020 to $17.2 billion in 2021. The wealth of Telegram founder increased exponentially recently after the app became popular.
- capableweb 5y ago
  > Forbes Forbes is also estimating (fancy guessing), doesn't make it into a fact. > net worth Also not cash, which would be needed to fund Telegram > vast majority of which comes from Telegram ownership Also means you wouldn't be able to use that net worth for funding Telegram, as that's where the net worth comes from anyway.

captn3m0 5y ago

From earlier this year, WSJ reported[0] telegram raised debt finance, and needed $700M, out of which 500M was just to return to TON investors. The article also quotes Durov as claiming "A project of our size needs at least a few hundred million dollars per year to keep going". >To pay the bills, Mr. Durov is issuing investors $1 billion to $1.5 billion of company debt, with the promise of discounted equity if the company eventually goes public, the people briefed on the plans said. >To repay its creditors, Telegram is selling five-year bonds that pay roughly 7% or 8% a year Durov is rich, but he's not going to spend all his fortune on running Telegram and re-paying these investors. He's also refused to raise money via equity in telegram, so advertising is the only way to keep the lights on telegram. [0]: https://archive.md/mGtgp https://archive.md/mGtgp