Do you derive the majority of your income from freelancing or are you a business which outsources a lot of their tasks? If so, you might have heard about the merger that was announced by the two main companies – oDesk and Elance – in the freelancing industry. The main purpose behind the merger is to create one major enterprise in the industry.
The companies involved have not disclosed any of the financial details. However, both CEOs maintain the statement that the merger is an equal one. One company has been in the industry for 15 years and has earned revenue of nearly $95 million. The other has been in the industry for about nine years, and has made over $45 million to date.
According to the stats, there are almost 8 million freelances who utilize the services of the two websites. Almost 2 million businesses, spanning in over 180 countries, use them for outsourcing their jobs. Combined, the annual billings of 2013 are in the range of $750 million. One of the freelancing companies charges a fee of 8.75% and the other charges 10%. These figures are capable of generating revenues worth $70.3 million annually, assuming that each company makes equal contributions to this amount. The actual amount is actually larger than this, since one of the company’s has a slightly bigger market share than the other.
As for the CEOs, one of them will continue to hold that position, and the other will be given the designation of a strategic advisor. The merged company’s name has not been announced as yet, and will be made public when antitrust scrutiny will be cleared. The CEO is quite confident no issues will arise with regards to this.
Even though the two companies will act as one, the platforms will still be operated independently. The CEO stated that the merged company will be able to provide improved tools that will produce better results, and achieve a more rapid growth in the process.
The freelance merger has been finalized at a time when both companies were looking for something that would take them to the next level. Though both involved companies are hopeful this is it, the majority of freelancers are quite skeptic. Only time will tell whether this deal is going to succeed or if both the companies will loose more than they expect to gain right now.
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