Welcome to WebmasterWorld Guest from 54.146.221.231

Forum Moderators: buckworks

Message Too Old, No Replies

Shopzilla is sold for $525 million

     
9:29 pm on Jun 6, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member shak is a WebmasterWorld Top Contributor of All Time 10+ Year Member

joined:June 28, 2002
posts:4154
votes: 0


LOS ANGELES (Reuters) - The E. W. Scripps Co. (SSP.N: Quote, Profile, Research) said on Monday it planned to buy Shopzilla to capitalize on the growing specialized Internet search business.
Scripps said it would pay $525 million in cash for 100 percent of Shopzilla, a comparison shopping search engine.

Shopzilla shareholders would also get Shopzilla's net working capital at the time of closing, estimated at about $35 million.

[reuters.com...]

1st eBay buying Shopping.com and now this, who be next?

Shak

9:34 pm on June 6, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Mar 22, 2005
posts:373
votes: 0


ok, i'm off to build a shopping search engine network
i'll be back next month .........
9:38 pm on June 6, 2005 (gmt 0)

Full Member

10+ Year Member

joined:Mar 7, 2004
posts:285
votes: 0


who be next?

pricegrabber seems the most likely IMO

9:38 pm on June 6, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Dec 2, 2002
posts:792
votes: 0


retail is hottttttttttttt
9:41 pm on June 6, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member shak is a WebmasterWorld Top Contributor of All Time 10+ Year Member

joined:June 28, 2002
posts:4154
votes: 0


who's left:

pricegrabber
nextag

who's been sold:

kelkoo = yahoo
pricerunner = valueclick
shopping.com = eBay
shopzilla = scripps

who may be looking to buy:

IAC (Diller and Co)
MSN
Amazon

9:44 pm on June 6, 2005 (gmt 0)

Full Member

10+ Year Member

joined:Mar 7, 2004
posts:285
votes: 0


IAC (Diller and Co)

BINGO

10:08 pm on June 6, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Oct 11, 2003
posts:427
votes: 0


If after the dot com crash someone told me a site called ShopZilla would be sold for half a billion dollars I wouldn't believe them. Yet here we are in a time warp of sorts.
10:11 pm on June 6, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Oct 8, 2003
posts:397
votes: 0


< Yet here we are in a time warp of sorts

It does feel like a time warp, especially in looking at the multiples involved. That being said, Shopzilla has been around for a long time... they were formerly Bizrate if my memory serves me correctly.

10:25 pm on June 6, 2005 (gmt 0)

Moderator from US 

WebmasterWorld Administrator martinibuster is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Apr 13, 2002
posts:13973
votes: 123


I have to go back to my nap.

[edited by: martinibuster at 10:32 pm (utc) on June 6, 2005]

10:29 pm on June 6, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 20, 2002
posts:810
votes: 0


These prices seem crazy high - somebody hear a bubble popping?
11:28 pm on June 6, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:May 22, 2002
posts:1001
votes: 0


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]

11:31 pm on June 6, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:May 22, 2002
posts:1001
votes: 0


Whoops... just saw
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!

11:32 pm on June 6, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Aug 20, 2003
posts:450
votes: 0


I have a niche price comparison engine, and based on MetricsMarket's traffic reports (i know they are not accurate, but..) ShopZilla's traffic is just 81 times mine.

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?

sdani.

EDIT - OK.. I MISSED THEIR BIZRATE SITE.

12:03 am on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Apr 18, 2003
posts:699
votes: 0


I don't use "shopping comparision engines" and know nothing about them. So is every link off their site basically just an affiliate link that they get a commission on?
12:15 am on June 7, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Aug 20, 2003
posts:450
votes: 0


limitup, most of the small niche comparison engines get affiliate commission. The big ones like shopping.com / and probably shopzilla charge per click.
They don't keep inventory, so it is hard to expect more than 10% revenue per sale if you don't keep the inventory and supply chain (so, I guess per click / affiliate model .. all should fall between 5-10% per sale.).

But I am just making some assumptions about someone else's business based on my understanding of it.

sdani

12:19 am on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:June 12, 2004
posts:789
votes: 0


Pretty much! And, because they know people are going to be using them, they push other ads like PPC. The main thing is that if people go to these and get a good deal from them, they'll come back again!

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!

1:22 am on June 7, 2005 (gmt 0)

New User

10+ Year Member

joined:Jan 11, 2005
posts:14
votes: 0


What is this 1999? HAHAHAHA

They will NEVER get 525 million back from a site like shopzilla... E. W. Scripps got ripped off in a big way... to the tune of 1/2 a billion for a freaking script... LOL! excuse the pun :)

2:50 am on June 7, 2005 (gmt 0)

New User

10+ Year Member

joined:July 13, 2004
posts:22
votes: 0


I don't mind paying for advertising, but in my field (health and beauty) potential customers come at 50 cents a click.

Anyone have any success at those prices?

[edited by: lorax at 2:34 pm (utc) on June 7, 2005]
[edit reason] removed URL [/edit]

5:54 am on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:July 4, 2001
posts:997
votes: 0


I suspect more than 1 in 100 buy something. This is true for content sites or what not, but what percentage of the people who walk into Wal-mart buy something? 99%? Its targetted traffic. I wouldn't be surprised if as high as 1 in 4 of those uniques bought *something*. Multiply your numbers by 25 and it starts to be a bit more believable.
7:17 am on June 7, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:May 21, 2002
posts:487
votes: 0


Did this deal include bizrate?

Donny

7:33 am on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member sem4u is a WebmasterWorld Top Contributor of All Time 10+ Year Member

joined:Dec 18, 2002
posts:3061
votes: 0


Wow! Another one sold!

I expect IAC and Amazon to buy one each next.

11:11 am on June 7, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Dec 17, 2003
posts:195
votes: 0


I'm interested in creating a pay per click shopping directory. Does anyone know a good script to handle it?

Brakkar

11:22 am on June 7, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Apr 16, 2005
posts:113
votes: 0


Shopzilla is definately a PPC setup - although they do also take affiliate scheme product feeds as well to fill in the gaps where they can't find anyone mug enough to swallow the PPC model.. So they really don't care if punters spend any money at the merchant sites (other than I guees the merchant might drop the programme if it's not profitable).

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.

12:07 pm on June 7, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Mar 22, 2005
posts:373
votes: 0


>>I'm interested in creating a pay per click shopping
>>directory.

you're not the only one ..........

>>Does anyone know a good script to handle it?

i'll sell you my code for $100 million. bargain.

12:36 pm on June 7, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:June 7, 2003
posts:149
votes: 0


>Did this deal include bizrate?

Shopzilla = new name for BizRate. and a bad name at that, really.

12:53 pm on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:June 12, 2004
posts:789
votes: 0


Hmmm, what will be the next hit? Maybe an eBay/Shopzilla network?
1:21 pm on June 7, 2005 (gmt 0)

New User

10+ Year Member

joined:July 31, 2003
posts:22
votes: 0


message to Bill, i am selling you can call me!
2:37 pm on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Apr 18, 2003
posts:699
votes: 0


Where do they get 13.2 million visitors per month? I've never seen a single ad for shopzilla?
3:14 pm on June 7, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member sem4u is a WebmasterWorld Top Contributor of All Time 10+ Year Member

joined:Dec 18, 2002
posts:3061
votes: 0


It used to be BizRate. I don't know why they changed the name.
5:01 pm on June 7, 2005 (gmt 0)

New User

10+ Year Member

joined:Jan 11, 2005
posts:14
votes: 0


Guys... I am positive they are now suffering from Buyers guilt..

If you had over 1/2 Billion dollars... is 'shopzilla' where you would spend it?

This 48 message thread spans 2 pages: 48