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  1. #1
    Online Marketing Consultant
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    Business.com is Finally Sold
    http://www.prnewswire.com/cgi-bin/st...04633062&EDATE

    It went for $345 Million in Cash. How's that for a domain sale?
    Adam Riemer Marketing, LLC. Online Marketing Blog and Affiliate Management Company
    Do you need help with your Marketing or Sales funneling, write me at adamr (at) adamriemer (dot) me

  2. #2
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    It's NOT CASH!!!
    Whoa -- this is not a cash sale: the $345 amount includes both "cash and deferred purchase consideration."

    In my experience, "deferred purchase consideration" is nothing but a "maximum earn-out" which is often hyper-inflated -- it reflects the maximum amount that could conceivably be paid to the seller, if the most optimistic estimates are all exceeded.

    For this kind of deal, I might expect to see a cash payment of $10 to $20 million (possibly as much as $30 to $50 million, if there is a significant current revenue stream), plus some share-of-revenue or growth-based "consideration" over time. This may also be contingent on continuing services from current key employees (that is, if certain employees quit, some part of the "consideration" might be lost). It might also be contingent on the continuation of key relationships with advertisers and others (even if continuation is implausible).

    In some cases, the "deferred purchase consideration" may even include deferred-issue stock or stock options in the acquiring business. Quite frankly, it could include anything or could really be nothing.

    I've seen many deals like this, and whenever numbers are later available, the "deferred" portion always turns out to be significantly less than the initial figures. In many cases, no "deferred" money is ever paid.
    Last edited by markwelch; July 26th, 2007 at 01:20 PM.

  3. #3
    Outsourced Program Manager Jorge - SHOPiMAR's Avatar
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    Holy cow, 345M, are you sure that is not a typo.

    I told a friend there's are allot of companies out there with big $$$, so start promoting that domain.


  4. #4
    ABW Ambassador Sam Bay's Avatar
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    It's not a domain name, it's a business!

  5. #5
    Online Marketing Consultant
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    "The company is profitable and is expected to generate revenues of greater than $50 million in 2007."

    I'd say the final sale price would probably more likely be in the 30-50 Million ranges rather than the 10 - 20 Million because of the annual revenue it is now generating. I shouldn't have posted the $345, however it is a fun figure from the release.

    Their traffic, at least from our end, has become a lot better and converts at a higher rate. Their traffic has also over the last year increased drastically. It also seems like a wise move for R.H. Donnelley IMO as far as B2B traffic is concerned with their Yellow Pages etc... It probably won't end at the $345 Million, but I'd be surprised if it went as low as $10.

    And I know it's a business not just a domain. I was just looking at some closing domain auctions and meant that as a sarcastic remark or joke. =0)
    Adam Riemer Marketing, LLC. Online Marketing Blog and Affiliate Management Company
    Do you need help with your Marketing or Sales funneling, write me at adamr (at) adamriemer (dot) me

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