Bohemia, NY (PRWEB) September 26, 2013
Financing expert Alec Sohmer comments on an article published on September 16th by New York Times, which details Google’s latest acquisition of Bump, a popular file transfer app for smartphones.
According to an article published by The New York Times titled “Google Buys Bump, Maker of Apps for Sharing Photos and Files,” Google acquired Bump last Monday, a smartphone app that allows users to transfer files by simply “bumping” their cell phones together. However, the article says Bump faced many hardships and failed to take off, even though successful venture capital firms raised $20 million to fund the app. The article says app “reinvented itself several times; first as a tool for exchanging business cards, then a social network, then a file-sharing service.”
Alec Sohmer, financing specialist and managing director at Plymouth Rock Capital, affirms that Google’s purchase of Bump was likely the only way the app would survive. “The app had many unsuccessful attempts at increasing downloads and usership,” he says. “When a company or a product goes through significant rebranding or restructuring processes multiple times in such a short timeframe, it’s usually a sign of difficulty. While Bump’s technology is useful, it’s not necessarily something that appealed to the majority of consumers. Google’s buyout saved this app.”
Sohmer says Google could use the new technology to compete with Apple. “When large corporations look to acquire small businesses, they look for a valuable technology,” he says. “By buying Bump’s file sharing technology, Google and Android can compete with Apple’s similar feature on most of its newer devices. This acquisition was a smart move for Google and a life-saving measure for Bump.”
The article reveals that Google was rumored to have paid about $40 million for the app, even though the two companies have not announced the price.
Alec Sohmer, a strategic financing leader and co-founder of Plymouth Rock Capital, has 20 years of Board-level experience. He has served in many interim management positions for businesses requiring significant turnaround or restructuring. He is able to increase revenue streams by utilizing a variety of line management techniques. In his two decades of experience, he has dramatically increased revenues of businesses by identifying untapped markets.