Hotornot sold for 20M to ashleymadison.com ie A dating site for married people that want to cheat.
Given the size of the site the brand and what not i’m amazed it sold for so little.
Hotornot sold for 20M to ashleymadison.com ie A dating site for married people that want to cheat.
Given the size of the site the brand and what not i’m amazed it sold for so little.
February 13, 2008 at 2:19 am |
They saw the ship was sinking and left it before it had gone down. It would be the right amount given if it makes 4 million of gross revenue * 5 years = 20 million, i believe that is the right gross calculation of total value.
February 13, 2008 at 3:55 pm |
Markus, I wonder how do you value now POF?
February 14, 2008 at 2:04 am |
@Zoltan:
Given POF’s size, and assume that Marcus is pulling $1 Million revenue a month from google ads, and assume that bandwidth cost and hardware costs is half of that, then it’s pretty easy to estimate that POF will generate about 5 Million in profit/year. The sale of Hot or Not basically put a 10 times earnings on Marcus’s business too, valuing POF at between 50Million – 100 Million.
February 14, 2008 at 6:32 am |
I wonder how much I could make from selling my site – http://www.chanceforlove.com
February 14, 2008 at 6:26 pm |
No one would value POF at 10 times profits. Hotornot has had declining profits for the past 5 years and no growth prospects. Its in a completely different class.
February 15, 2008 at 12:30 am |
Markus, until you have an actual offer, I would assume that a 10 year profit in advance would be a nice deal to you as well. Just my 2 cents. We all try to value our businesses as high as possible, but the fact is that the actual value of the site = the price that is offered by somebody.
What similar deals have been made in the near past?
February 15, 2008 at 12:36 am |
One more thing, sometimes the offer and asking price is quite different. Sure, I can ask for $1 million for something, but you only offer $100.000. If there is no other offer and I keep insisting to get $1 million, I incline to think that the $100.000 is more closer to reality.
So again, will you sell in the near future? Has been asked many times in your blog, it is time again for this question.
February 15, 2008 at 12:37 am |
Hey Markus, POF keeps growing while other sites keep shrinking, so what is the biggest actual valuation/investment offer you have ever had (if you care to share that info)?
Also POF has grown a lot since the last time you posted about your hardware/software, have you had to make any significant changes to support the growth?
Cheers