Forum Moderators: phranque
Jupitermedia Corp... Tuesday announced plans to sell its online news sites and a series of trade shows about search engine strategies for $43 million in cash. 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. The deal is the second major acquisition of an Internet-related conference and trade show business this year...The deal includes the Search Engine Strategies trade shows and the ClickZ.com Network of Web sites, including SearchEngineWatch.com.
I'm sure it's just cost cutting and consolidation, brand focus.
What I thought was more odd was their recent consolidation of Photo.com affiliate programs (and others) into JupiterMedia on CJ, abandoning the existing affiliate branding, and then dumping most of the Photo.com ads and stranding part-time affiliates with broken links.
I think more shake-ups are coming with them.
Why the sale? The simple reason is that Jupitermedia has evolved from being a media company with images into an Image company with media
Alan obviously feels he knows something the rest of us don't and he has been business right, a whole lot more times than business wrong in his career.
Just thought I'd add to the rumoring :-)
The more a thing is tied perceptually to its owner/founder/leader, the more important it is, over time, that a brand be built that has meaning and substance, beyond the owner/founder/leader's name.
Media companies become great when they transcend owners and become brands. Just ask Rosie or Martha. ;-)
And I would not discount the motivation behind cutting branches off the tree when they no longer mesh well with the trunk.
Photo Sharing and Wireless Imaging Portal - Asking Price $20M
One of the few remaining leading photo sharing portals is exploring acquisition opportunities. Currently in its seventh year of operations, this online photo service enables its members to upload pictures from a computer or mobile device. Members can share their photos online with family and friends, host images and purchase film quality prints and other photo products. Photo albums can be customized with captions, music, backgrounds and various access levels. In addition the company has developed a variety of technologies for wireless phone users including the ability to order unique photo products from their camera phones. The company is also planning to release next generation photo community applications for both online as well as wireless access. For additional information please contact us.
$43 million still sounds too cheap. I wish I would have had an opportunity to put in a bid at those rates.
You could sell WebmasterWorld and buy SEW.
Even cashing a few millions in difference and continuing doing the same as you do now.
Damn, too late.
The units generated $23.6 million in gross profits that year.
Looks like about 2x of gross yearly profits.
So we're probably talking more like 3-4 P/E (i.e. NET), which is fair imo.
I don't really agree with that at all. I have sat in a bar with some of the more well known and well respected speakers and heard them say that nobody has ever done as much for them as DS has. On a number of occassions he has also helped me out as well, without any request for compensation.
Few people give back as much as he does, and I doubt anybody has more loyal fans in this industry than he does. If he left many people would follow along with him or go elsewhere.
At one point (well before my time) JimPlanet was #1, but by the time I came online I ran into many of the smaller upstart forums before it.
Not too long ago I placed some site targeted Google AdSense ads on a bunch of websites, and you would be amazed at how much more traffic some forums get than the old #1.
Most channels (forums / blogs / sites) are heavily duplicated from one to another, but Danny has an original voice and is probably the single most connected person in the industry.
It is not uncommon for sites to die, and SEW / SES is Danny Sullivan IMHO. I have never really chatted with Danny much (other than the occassional hi or on forums), but I personally find it amazing how well he can keep the long and short on so many different ideas.
As soon as he can convince a non-Vegas bar to stay open till the last webmaster calls it quits.
(Brett .. you know we love you!)
The event management side of this business is high risk. Shows come and go and have a lot of risk associated with them. The $43 million is meanless without the other ten million metrics associated with such a venture.
Jupitermedia Corp. shares fell sharply on Tuesday after the company reported weak second-quarter growth in its online images business, ending a two-week surge in the stock's priceAlan M. Meckler, Jupitermedia chairman and chief executive, speculated in an interview that Tuesday's sell-off was likely a result of the recent stock surge and continued volatility. "You never know, I don't think it has anything to do with the sale," Meckler said. "We have a huge short position in our stock."
Yeah, but the million dollar question is: "When is Brett Tabke going to cash out?"
Rather than cash out I suggest Brett consider using the WebmasterWorld community as his pool of capital to expand the WebmasterWorld enterprise. There are thousands of people who read/post in the forums who have significant capital to invest. Rather than a single big VC player WebmasterWorld could seek, for example, 20 million in new capital using 200 people making 100k investments - or some variation on that theme. One advantage of this approach is that the community gets a stake in the venture, which should help to stabilize the investment for all.
Prospective buyers are going to want to see revenue/cash flow. Brett'll offer the Conference accounts. But, as far as the WW site goes I can't see there being mega millions. Granted, this is the best webmaster resource, a top community etc etc but it's not a big revenue generator. And revenue is largely what determines selling price.
Speaking of evil empires, I have to get back to mine. That damn Skywalker is really a pain in my Jabberwocky.
