Domain Sale ---- Huge

[acronym007]

Can you believe it, for one domain? WOW!!!!

http://news.bbc.co.uk/1/hi/business/4103787.stm

People, I believe one day, all of us will be part of an exclusive group. Once the masses, the rest of the population understands the value of a domain name, we will be in a good position. Any thoughts. Cheers

 

[Jack Gordon]

only if your domains are anywhere near as good as rent.com...

 

[acronym007]

Well, they may not all bring in millions but a six figure sale is not bad either.

 

[Edwin]

It's not a domain sale, it's a sale of a business throwing off $40 million in revenue a year, which just happens to have a really nice domain associated with it. MASSIVE difference!

 

[NameYourself]

I just don't see why they paid $415m for it when it only makes $40m annually. I'm sure ebay has good reasons for purchasing it, but paying that many years worth of revenue sounds ridiculous.

 

[Edwin]

I just don't see why they paid $415m for it when it only makes $40m annually. I'm sure ebay has good reasons for purchasing it, but paying that many years worth of revenue sounds ridiculous.

I covered that here.
http://www.dnforum.com/showpost.php?p=477108&postcount=19

Basically, having to ask the question in the first place shows a lack of real-world business experience.

 

[GT Web]

very true points Edwin...

people do need to understand simple formulas can't be used all the time to determine "fair" prices and values

 

[NameYourself]

Edwin,

Yes it is true that there is no one formula to determine a good general sell price for all businesses accross all markets, which all have different assets and different shares of their markets, etc.. The list of factors influencing a company's value could go on and on.

For a company that is purely internet-based though it is a lot. The following quote from an S&P analyst commenting on the rent.com sale supports this point.

The privately held company said it expects revenue this year of more than $40 million. Standard & Poor's equity analyst Scott Kessler said that, at a cost of 10 times revenue, the deal appeared too expensive to him.
``I don't really see how there are synergies between eBay and Rent.com,'' Kessler said. ``I don't see much value added with this transaction. It seems like a nice little company. And it seems like eBay paid a lot for it. We'll see.''

http://www.mercurynews.com/mld/mercurynews/10447562.htm?1c

 

[mole]

Maybe that says something about DEVELOPING a single domain name into a BUSINESS.