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the deal will increase its revenue outlook by around $8 million So around a 4.5x revenue multiple, which doesn't seem bad for a business that isn't growing rap
by petercooper 10y ago
the deal will increase its revenue outlook by around $8 million
So around a 4.5x revenue multiple, which doesn't seem bad for a business that isn't growing rapidly(?)
- charlesdm 10y agoSince when does revenue matter? That's like selling a car dealership that does $100mm a year for $450mm, when the profit is only, say, 5% per car sold.
- petercooper 10y agoMy point is merely that the multiple seems healthy, but sure, if we do it on likely income instead then it's an even higher multiple that'll be well above typical acquisitions of small online communities or media sites.
- charlesdm 10y agoI think they actually (over)paid (?) a good amount for a website that isn't growing significantly. But hey, public tech companies are held to different standards / analysed using different metrics.
- elsewhen 10y agomany acquirers focus on revenue more than profits because once ingested, the cost-side of the business can change dramatically. according to quantcast, deviantart is doing over 40MM monthly uniques. i suspect it is that reach (and not profit or revenue) that wix is actually acquiring.