HotOrNot Sold for a reported $20 Million?

Sale details

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.

9 Responses to “HotOrNot Sold for a reported $20 Million?”

  1. Mayo Says:

    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.

  2. Zoltan Says:

    Markus, I wonder how do you value now POF?

  3. Fishy Says:

    @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.

  4. Alex Says:

    I wonder how much I could make from selling my site – http://www.chanceforlove.com

  5. Markus Says:

    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.

  6. Zoltan Says:

    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?

  7. Zoltan Says:

    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.🙂

  8. DG Says:

    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

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