June 22, 2007
Business.com domain name could fetch over $300 million
Wild! BUSINESS.COM IS ON the block and could fetch over $300 million. The firm's founders paid $7.5 million for its domain name in '99. The WSJ reports.
"Entrepreneurs Jake Winebaum and Sky Dayton were widely mocked for lavishing $7.5 million on a single Internet domain name -- business.com -- back in 1999. It was the single highest price paid for a domain name at the time.
Now look who is having the last laugh.
The company that grew out of business.com -- a search engine used by businesses to find products and services -- is now on the auction block, and could fetch anywhere between $300 million and $400 million, according to people familiar with the matter.
Closely held business.com is expected to attract a host of interest from the likes of media companies such as Dow Jones & Co. and New York Times Co., these people said. Requests for comment from Business.com and the New York Times were not returned yesterday evening. Dow Jones, publisher of The Wall Street Journal, declined to comment.
... Business.com, Santa Monica, Calif., has 2007 earnings before interest, taxes, depreciation and amortization of about $15 million, the people familiar with the matter said, with its online traffic growing by 50% in the first quarter of 2007, compared with the year earlier.
The people familiar with the matter say that the final price for Business.com is hard to predict. But at $350 million, a deal would value the company at some 24 times cash flow. Credit Suisse is running the auction. "
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