Also from Stuff now: Australia's Kogan.com buys Mighty Ape for $127 million | Stuff.co.nz

Well done to the MightyApe team. I look forward to a lot more Kogan stock being held in NZ and their ridiculous shipping charges coming down.

Not sure how I feel about this, why is it a good thing another NZ company has been sold to an Australian one.

davidcole:

 

Not sure how I feel about this, why is it a good thing another NZ company has been sold to an Australian one.

 

 

 

Agree with the NZ owned sentiment, however for the owners that built it up it's well deserved success and cashout.

It is a pity there was no Kiwi company that would match or saw the value.

You'd think Mighty Ape infrastructure would be exactly what The Warehouse Group would need to up their game. 

Remember when they couldn't keep up with demand in lockdown with some people experiencing a month in delays.  

Valcor:

 

You'd think Mighty Ape infrastructure would be exactly what The Warehouse Group would need to up there game. 

 

Remember when they couldn't keep up with demand in lockdown with some people experiencing a month in delays.  

 

I wonder if the quality/range/pricing will be negatively affected..

Sad in a way. I really thought amazon would have snapped him. still thats a good payday, i hope they get most of it.

As for kogan... sigh, more cheap rubbish being supplied into NZ. Its starting to feel like the period post the last big recession in the early 90's - 1991-1996 - where there was a big surge in cheap and nasty goods to NZ, at the expensive of any good quality stuff.

Happy for the owners of MightyApe, sad that it's almost certainly now going to go to seed with more of the cheap, s****y rubbish that Kogan sells.

Based on the profit, it sounds like they got it really cheap. The amount sounds tiny these days. 

Wow they only paid $127 million for it? And Mighty Ape estimates a gross profit of $47 million next year alone? At that good of a deal, I'm really surprised no one locally snapped them up.

TradeMe had a similar net profit (not the same as gross I know), but sold for NZ$2.56 billion.

Valcor:

 

You'd think Mighty Ape infrastructure would be exactly what The Warehouse Group would need to up their game. 

 

Remember when they couldn't keep up with demand in lockdown with some people experiencing a month in delays.  

 

Maybe it could be seen as reducing competition?. When I heard it had sold, I thought it would be to the warehouse. At least then it could have been owned by some NZ shareholders. They even sell the same sorts of things. 

I am strongly conflicted by this. On one had I am glad for the owners who built a well-tuned machine from the ground up yet maintained a reputation for quality of product & service (a rarity of late), but on the other hand I strongly dislike Kogan - a lot of cheap products and a poor reputation for customer service (not to mention the adverts, o lord the volume of spam emails I used to get before the "unsubscribe" button finally had an effect).

We'll just have to wait and see how much stays the same. Hopefully the Primate subscription will remain as good a deal as it currently does - it seems like it would be a good canary for how Kogan will want things done.

Is it possible they needed a cash injection and needed to raise capital in a hurry? Just thinking the other flipside, there could very well be caveats to the sale that dictate what they can cannot do for a period of time.

Whilst MANY good companies have been bought and gutted by greedy CEO's who wanted out, a few CEO's were willing to see a buy out as a means to an end. Heck they could still be running the company for the time being.

Just saying, don't just jump to negative conclusions. Not yet anyway.. 

LostBoyNZ:

 

Wow they only paid $127 million for it? And Mighty Ape estimates a gross profit of $47 million next year alone? At that good of a deal, I'm really surprised no one locally snapped them up.

 

TradeMe had a similar net profit (not the same as gross I know), but sold for NZ$2.56 billion.

 

Exactly. Would have been a good investment for many. Wonder why they didn't list it on the stock exchange. It was almost NZs equivalent of Amazon, and had good potential. We know how well Amazon stocks have done. Could have been a good investment for mum and dad investors instead of just buying houses. Such a pity. 

IMO we should do more to keep good successful companies in NZ ownership, even if they get listed on the NZX.