Dictionary.com (ascii) $100 million

[bwhhisc]

http://blog.cmnn.com/

NEW YORK, July 16 /PRNewswire-FirstCall/ -- Answers Corporation (NASDAQ: ANSW), creator of Answers.com(TM), announced today that it has entered into a purchase agreement to acquire Lexico Publishing Group, LLC, owner of the popular Web properties Dictionary.com, Thesaurus.com and Reference.com, for $100 million in cash. The transaction is subject to financing and customary closing conditions and is scheduled to be completed by fall of this year.

Lexico is a leading online provider of reference products and services, which attracted approximately 11.5 million unique monthly users in the U.S. during the month of June 2007, according to comScore Media Metrix....In 2006, it generated revenues of $7 million, EBITDA of $2.9 million and net income of $2.8 million. This strategic acquisition drives Answers to a leadership position in online information publishing.

[xxbossmanxx]

VVN I have made comments in the past about how smart it was to own those 3 names.

[idnowner]

I've got to wonder, is the Japanese IDN version worth 5% of that? (First $5-million takes it!)

[Rubber Duck]

Originally Posted by idnowner

I've got to wonder, is the Japanese IDN version worth 5% of that? (First $5-million takes it!)

Don't be soft. It has to be be worth 20% or more.

If a Japanese needs a bloody dictionary, he is hardly like to look up an English URL now is he?

[touchring]

Originally Posted by xxbossmanxx

VVN I have made comments in the past about how smart it was to own those 3 names.

Before we had Google, the best names are those that you can use everyday like Dictionary, translation, weather, directories and databases.

Now, with Google purging partners, scrapers, and content sites, people are starting to go back to domains that can build up SE independent traffic.

I got a bunchful of translation, and dictionary names to hedge on!

[g]

Originally Posted by Rubber Duck

Don't be soft. It has to be be worth 20% or more.

If a Japanese needs a bloody dictionary, he is hardly like to look up an English URL now is he?

These names are generating huge income ... 7 million $ last year

many people won't hesitate to pay 14 years of revenue for any name

[bwhhisc]

Originally Posted by g

These names are generating huge income ... 7 million $ last year
many people won't hesitate to pay 14 years of revenue for any name

What is the "standard" for selling generic ASCII names x actual revenue.
Seems that (revenue x 7) was kind of a loose average based on sales and listings at dnf.
Anyone have any formulas or insight?

[ala101]

usually, revenue websites r being sold for ( 1 month revenue * 10) or sometimes * 12

but with domains and idns it seems to be better !

[Rubber Duck]

Originally Posted by ala101

usually, revenue websites r being sold for ( 1 month revenue * 10) or sometimes * 12

but with domains and idns it seems to be better !

It is all down to risk and return.

ROI is obviously proportional to the inverse of the multiplier, but it needs to be factored by the prospects of earnings growth or the risk it will simply evaporate or that the domain can be WIPOed.

[g]

Originally Posted by bwhhisc

What is the "standard" for selling generic ASCII names x actual revenue.
Seems that (revenue x 7) was kind of a loose average based on sales and listings at dnf.
Anyone have any formulas or insight?

revenue somtimes is needed for deals over 100k$

and it is a must for deals over million dollars

actually it is like selling a business because it is a huge amount of money

but revenue formulas for cheap names like xxx$ and xxxx$ are something funny

it is like you are going to buy a taxi and you offer to buy it for 3 years of revenue ... haha

or you go to buy a computer for your netcafe shop and you offer them 100 hours of revenue ... lol