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Shopzilla shareholders would also get Shopzilla's net working capital at the time of closing, estimated at about $35 million.
1st eBay buying Shopping.com and now this, who be next?
organizing more than 25 million products from more than 45,000 stores.The corporate re-branding was done to better position itself as a broad-based shopping site.
U.S. consumer retail spending is greater than a trillion dollar annual business, and Forrester Research estimates that $79 billion of that spending occurs online today. That figure is expected to double over the next six years as more consumers get comfortable using the Internet to shop. With 13.2 million unique visitors per month, Shopzilla, Inc. had already begun to tap the vast potential of the emerging ecommerce market.
Quoted sections are from Shopzilla
So, we have traffic. 13.2M visitors, say 1 in 100 spends an average of 100$, thats 13.2M$ cashflow, lets assume 10% profit - 1.23M a year cash generation.
Over 2,400 stores are participating in BizRate’s program
So, 2.400 stores (less than 10%) have been conned into your "BizRate" customer rating service.
Founded in 1996, the Los Angeles-based company is profitable and privately held.
Well, woop de doo. How much do 2 programmers and a chick to make the coffee cost?
Either something we don't know about is going on (ie a revenue stream that isn't prominent on there website) or we're looking at money laundering via the Ukranian mafia (can we say that here? Or, will we be kicked off for suggesting this?) has hired a techie accountant.
1.23M$ (assumption) a year cashflow in no way adds up to half a billion dollars. Mad. Just... mad. No wonder B. Geldorf is foaming at the mouth.
[edited by: lorax at 2:33 pm (utc) on June 7, 2005]
[edit reason] removed URLs [/edit]
Founded in 1996, Shopzilla is a privately-held company that is expected to generate $30 million to $33 million in earnings before interest, taxes, depreciation and amortization on revenue of $130 million to $140 million for the full year 2005.
Somebody got a zero confused when working out profitablity!
If I enchmark it based on my stats, the half billion price tag seems to be a bublle made up of few more bubbles.
Except top 2-3 merchants at CJ, the best affiliate EPC is about 200$. They got 2400000 visitors in a month, which probably means 480,000 a month and you have you deduct the expenses.
Am I missing something here?
EDIT - OK.. I MISSED THEIR BIZRATE SITE.
But I am just making some assumptions about someone else's business based on my understanding of it.
I use these compare sites because it's just so much easier than trawling through half the crap on search engines! And they do wot they say on the tin!
The real trick with being able to work that way versus a purely commission on sales model is to carry enough clout to be able to persuade advertisers to take the gamble - something only a handful can achieve.