From my perspective, the problem that Spookfish has is that they have chosen to act as a technology supplier in the bigger market, rather than keeping total control of their product. They will only ever get a small portion of the earnings available, because they are taking no risk.
Ultimately this means that whilst they may be able to compete in Australia (eventually), they will never be in the position of Nearmap, where the US operation will eventually dwarf that in Australia. This gives NEA the ability to use the US profits to support the Australian operation if they have to indulge in a price war - which Spookfish will never have the resources to match.
NEA Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
