Page 6 - bne_Tech_01_2021

Leaders
January 2021 www.intellinews.com I Page 6
Durov added that for a messenger, obtaining
a loan is one of the possible ways "to remain completely independent and true to our values, “while implementing a monetisation strategy."
The company is reported to be short of money after it had to pay back most of the money it raised during the 2018 ICO. The US SEC imposed
a minor fine of $18.5mn on the TON project in June last year for acting as an unregulated security, but one of the conditions of the deal with SEC is that Durov should pay back $1.2bn raised from the international investors. Telegram commented that over $1.2bn of investment in TON had already been repaid either in cash, or liability agreements.
Monetisation
Telegram currently makes no money. Durov announced plans to start monetising the service this year in December 2020.
Until now, as far as is known, Durov financed Telegram mostly alone. Durov has already made a fortune with other internet projects such
as VKontakte.ru, Russia’s biggest social media site and the Russian language equivalent
of Facebook.
Durov and his brother Nikolai are the sole owners of Telegram. Durov had previously refused to let external investors into Telegram, explaining this by his desire to maintain independence. He also promised this to the users.
But the TON project has consumed a lot of money. Two years ago, in a presentation to investors, Telegram predicted that by 2021, server costs
will grow to $220mn from $70mn in 2017,
The Bell reported at the time.
A new convertible debt offering for $1bn that
is now reportedly on the table will support the expansion of Telegram, and Durov will finance the company from his own pocket before it goes public, writes The Bell. At the same time, Durov will keep the majority of the voting shares for himself in order to maintain control.
If the company is to IPO then now is the
time. International equity markets are awash with liquidity thanks to the stimulus money governments around the world have been pouring into markets in the wake of the coronavirus (COVID-19) pandemic. Major stock markets are at all-time highs and stock prices are expensive. Equity investors are looking for something new to put their money in. The recent IPO of Russian e-commerce company Ozon Holdings raised more than twice the $500mn it was initially asking for at the end of last year. Another mooted IPO of “the Netflix of Russia,” the company ivi.ru, is expected to raise $1bn if
it goes ahead. Ivi.ru registered for an IPO with NASDAQ in December.
The brouhaha that has followed the decision of Twitter and other social media to ban outgoing US President Donald Trump has only created a tailwind for Telegram, which has been the major beneficiary of the scandal. Even the presidents of Brazil and Turkey have just joined the service and opened Telegram channels in the last week.
In the first week of 2021, Telegram's audience reached 500mn monthly active users. In three days in January, the messenger gained another 25mn, whereas in all of 2020 Telegram's audience grew by a total of 1.5mn users a day.
“Perhaps we are witnessing the largest digital migration in human history,” Durov told The Bell.
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