So 12x is being applied to the big deals too? :)
Thank you for the news. I think I am SEW member for 7 years now and wish them all the best!
I second bakedjake... wow.
Yeah, but the million dollar question is: "When is Brett Tabke going to cash out?"
safe harbor / disclaimer: we run similar - sometimes considered competing - tradeshow conferences [webmasterworld.com].
Alan Meckler is one of the most savvy, experienced, and street wise internet CEO's in the business today. I would never under estimate or question his real "end game" solutions here. However, the above news is perplexing - not fully realized - nor digested yet. I can't help but think alan is holding another shoe in the air. Thoughts:
- why so cheap? 1x revenue!? That's not right - that's not right at all. Other trade shows are selling for 9-12x revenue [expoweb.com].
- $43 million? Pennies on the dollar.
I would put the true evaluation of SES at well over one hundred million. SEW.com with DS is itself worth $43million - let alone the whole ClickZ network.
If this stands without other "offerings", it will be the best internet deal since $83 a share for Google.
- Another London company aye?
- Does DS leave SearchEngineWatch? Or status quo under the new regime? What's his deal?
- What's it mean for SES?
New companies *always* meddle. argh - if it ain't broke - don't fix it.
- Who is the new company and what do they want with SES!?
- Does this include all the Jupiter conferences - or just ses?
- Then again, $43mil in cash would be hard to say no too.
Big News! Looks like Incisive Media found a great deal there!
BRett, do you think this purchase will eventually be positive or negative for your competing conferences?
If it is as you say, "New companies fix their purchases when they are not broke" - I'd be looking at this as a positive sign for WebmasterWorld conferences.
What does this change mean to WebmasterWorld? Good, bad? How do you see all this playing out in the short/long term for WebmasterWorld?
Wow is right.
This will create some interesting buzz around the show next week.
|- Does DS leave SearchEngineWatch? Or status quo under the new regime? |
According to DS [forums.searchenginewatch.com], it's business as usual for SEW, perhaps with more development going into SEW in the future.
Figured it would be on the homepage of SEW forums by now
Brett, the figures certainly don't reflect other high profile deals but it's a damn good example to throw at those sellers who want 100x for their PR1 DMOZ clone directories... and who keep using IPOs like Google's as examples of fair valuations. :)
[edited by: oddsod at 3:35 pm (utc) on Aug. 2, 2005]
Nice disclaimer Brett :)
Maybe Jupiter sees search hype starting to cool and more rich media and brand advertising moving in as the next wave as broadband adoption keeps going up, or maybe they just didn't want to be in the biz anymore. Either way it does seem cheap compared to other deals.
Perhaps Meckler is being kept on in some consulting capacity with a higher then normal salary.
Just a thought. Probably not well thought out.
The stock photography image business is recurring billing off licensing and royalities. aka: the golden goose.
$43 million still sounds too cheap. I wish I would have had an opportunity to put in a bid at those rates. But, these deals always seem weird and hard-too-understand to the outsiders. I think the most recent lesson [webmasterworld.com] in that was Noel. Everyone thought he sold too cheap and now it looks a whole lot different after the buyout [acxiom.com]. Don't get me wrong - I think it is great news and adds to the whole buzz about trade shows - which is good for everyone involved in conferences and trade shows. Lol
I agree with Brett. Way too cheap if it's only one year's revenue. Something isn't right. But, they $43 million sounds high for one year, too.
In publishing in the real world, it runs from 3x to as high as 7x (although that is rare).
I agree that the sale seems "too cheap", however they could have a mountain of debt or other liabilities. Could be undisclosed compensation for the sellers as well.
Do we have any "net" figures or is everything quoted "gross"?
When taking into account the profit from the business for purposes of calculating the business worth it's the net profit that matters. In fact, this price could really be 100x for all we know.
|The units generated $23.6 million in gross profits that year. |
Looks like about 2x of gross yearly profits.
Wow! [rubs eyes, looks again]
Perhpas they needed to raise cash fast for a still more lucrative venture, economically speaking that's the only justification... but for what?
|The buyer, London-based trade publisher Incisive Media plc, will be paying about one-time full 2004 revenues for the Jupitermedia assets. For calendar 2004, Jupitermedia reported $39.9 million in revenues for its online media and events divisions. The units generated $23.6 million in gross profits that year. |
That was last year - add 30%-40% for this year.
I think there is another shoe to drop in all this.
I dunno about that. I think oddsod is right. Many of us can post large revenue figures that may sound impressive, but know that what counts is the profit margin.
<edit out bad math>
[edited by: Kirby at 6:07 pm (utc) on Aug. 2, 2005]
Yep, with no exact net and complete numbers including back-ground, no way to say if this is cheap or not..
as always, few free lunches around..
Interesting play. Incisive doesnt seem like a large entity as they had to raise capital by selling shares to get cash for the deal. [incisivemedia.com...]
Expansion into international markets seems like it could lead to oversaturation of search conferences especially with a lot of the speakers (myself included) bopping all over the world to speak at these shows, it may be tough to find speakers that are a draw.
Agree with Brett, there is another shoe to drop here. This is a giveaway, a bad business decision from an outside view looking in. It sets a horrible precedent for businesses in the sector. One times sales is laughable.
I wish somehow I could raise $44 mil. LOL
I cannot wait to read the rest of the story.
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