4 ms·

If it passively generates $200k /yr with no maintenance, what reason is there to sell?

cbsmith 14y ago
If they aren't focused on it, it is a distraction and can potentially tarnish the brand. Plus, they aren't going to sell for nothing, so they get immediate capital they can invest in areas where they expect a higher rate of return.
- cncool 14y ago
  They are shutting it down for no money on July 1st. There is no immediate capital in that situation.
  - cbsmith 14y ago
    Yup, that's more about the brand issue. You have to shut it down eventually, and they've been awfully patient (likely because of the incoming capital).
- moe 14y ago
  In other words: decadence. I'm assuming in their favor that they really believe $480k would be fair deal - which means they've simply lost touch with reality and can no longer discern how much of their revenue stems from the brand and how much from actual product value. The rational move would be to hire an admin for $100k (remember we're in alternate reality), tell him to keep the site up, go about his life and not call. And collect the remaining $100k until the product fizzles out. Btw, I'd volunteer to take that admin-role when your sale fails. $100k may not mean much to 37signals anymore. For me it would be a lot of money. I promise to not call you ever, you can just forget that site after you handed it over. I will guarantee 100% uptime (yes 100%, via anycast, at my expense, included with the 100k).
  - cbsmith 14y ago
    > In other words: decadence. Lols. Yeah, that's it. > The rational move would be to hire an admin for $100k (remember we're in alternate reality), tell him to keep the site up, go about his life and not call. And collect the remaining $100k until the product fizzles out. That's what any prospective buyer could do, and they haven't exactly been coming out of the wood work. Heck, if it's so easy, you could do it.
duck 14y ago
Focus. Just because something has little to no maintenance doesn't mean you don't think about it. When it doesn't match your existing portfolio of products it makes it harder to incorporate into your overall plans.
SpiderX 14y ago
Because it's summer, they want their $480k to spend on their vacations.
- rudiger 14y ago
  I don't think they're worried about summer vacation money.

If they aren't focused on it, it is a distraction and can potentially tarnish the brand. Plus, they aren't going to sell for nothing, so they get immediate capital they can invest in areas where they expect a higher rate of return.

cncool 14y ago
They are shutting it down for no money on July 1st. There is no immediate capital in that situation.
- cbsmith 14y ago
  Yup, that's more about the brand issue. You have to shut it down eventually, and they've been awfully patient (likely because of the incoming capital).
moe 14y ago
In other words: decadence. I'm assuming in their favor that they really believe $480k would be fair deal - which means they've simply lost touch with reality and can no longer discern how much of their revenue stems from the brand and how much from actual product value. The rational move would be to hire an admin for $100k (remember we're in alternate reality), tell him to keep the site up, go about his life and not call. And collect the remaining $100k until the product fizzles out. Btw, I'd volunteer to take that admin-role when your sale fails. $100k may not mean much to 37signals anymore. For me it would be a lot of money. I promise to not call you ever, you can just forget that site after you handed it over. I will guarantee 100% uptime (yes 100%, via anycast, at my expense, included with the 100k).
- cbsmith 14y ago
  > In other words: decadence. Lols. Yeah, that's it. > The rational move would be to hire an admin for $100k (remember we're in alternate reality), tell him to keep the site up, go about his life and not call. And collect the remaining $100k until the product fizzles out. That's what any prospective buyer could do, and they haven't exactly been coming out of the wood work. Heck, if it's so easy, you could do it.

duck 14y ago

Focus. Just because something has little to no maintenance doesn't mean you don't think about it. When it doesn't match your existing portfolio of products it makes it harder to incorporate into your overall plans.

SpiderX 14y ago

Because it's summer, they want their $480k to spend on their vacations.

rudiger 14y ago
I don't think they're worried about summer vacation money.