Business.com - Sold for $350 million

[fundraiser]

The Web's original high-price domain name has been sold again -- for another lofty price.

Telephone-directory company R.H. Donnelley Corp. clinched a deal for Web-based marketing directory Business.com Inc. for between $340 million and $360 million, according to a person familiar with the transaction.

http://online.wsj.com/article/SB118541740110378568.html?mod=googlenews_wsj

 

[WeBuyThe.Com]

Great Scott!! Excellent news for the industry in general, tons of press.

It's a no lose proposition for a huge company; A 5% ROI out of the gates.

The Santa Monica, Calif., company has cash flow -- of about $15 million -- that will be but a minuscule portion of Donnelley's 2006 operating income of $442 million. Traditional publishers are nonetheless willing to pay top dollar for Web-based businesses, given their overall growth rate and the wider consumer shift to Internet habits.

 

[petrosc]

I can't believe they pulled this off! I was laughing when they announced that they want $350M for business.com

This is bad for our business, this will overinflate the prices of generics

 

[Bill Roy]

Brilliant news!

Perhaps now we can look at bringing the domain business into the 'main sphere' rather than being something on the edge!

 

[pelican]

at least it proves that domain is as valuable as your physical real estate.

 

[Focus]

not suprised...they got pizaid k:

 

[Sender]

Business.com isn't just a domain though, right? An article says that they employ over 100 people and generated revenues of greater than $50 million this year.

 

[Focus]

word, even better deal then..

 

[H2FC]

My big concern with the higher price sales is the effect it may have on the registration and renewal prices of domains. It could price the smaller domainer completely out of the business.

I expect it to happen much the same way as the average property owner can't afford the waterfront properties......not only because of the high initial cost but for the higher owner property taxes.

 

[Focus]

unlikely, but thats the way the success ball bounces! BUSINESS! dot com of course..

 

[B.King]

holy shit!

Smart sale

 

[Theo]

I am sure this will lift the value of .mobi up - NOT!

 

[Rarethings]

they overpaid a ton on this one, but good sale nonetheless.

 

[carlton]

This is bad for our business, this will overinflate the prices of generics

:lol: Oh, darn!

 

[nrmillions]

This isnt a sale of a domain name, its a sale of a very profitable business. Its just like if Facebook.com were to sell and just like when last.fm sold for over 200 million. People are getting confused and thinking this is a great domain name sale because just the domain name alone had sold previously several years ago.

 

[Theo]

There is no mentioning of "profitability":

The Santa Monica, Calif., company has cash flow -- of about $15 million

In other words, they have about $15 million in the bank for operating expenses. So to sell for $360 million that's balls to their forehead

 

[DomainMagnate]

oh man thats the biggest scraper out there
These pages sure look like ppc, only difference is they rank well in google
http://www.business.com/directory/retail_and_consumer_services/travel_and_tourism/events/

 

[nrmillions]

There is no mentioning of "profitability":



In other words, they have about $15 million in the bank for operating expenses. So to sell for $360 million that's balls to their forehead

Their profit is currently $15 million per year. Who knows what kind of business plans the new owner has to increase profits even more. Websites sell for BILLIONS of dollars now days so we might be seeing this one sell again for another HUGE amount in the next few years.

http://www.techcrunch.com/2007/06/21/businesscom-on-the-block/

 

[Theo]

I'm sorry, where exactly do you read "PROFIT is $15 million per year" ?

The article says "Business.com now has EBITDA of around $15 million/year" - that's Earnings Before Interest, Taxes, Depreciation and Amortization. It's a method of evaluating a company's value - NOT their profit.

 

[nrmillions]

EBITDA is a measure of profitability