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Internet media company Internet Brands this morning announced that it has entered into a definitive merger agreement to be acquired by an affiliate of private equity investment firm Hellman & Friedman Capital Partners VI in a transaction valued at approximately $640 million. [techcrunch.com...]
Bob Brisco's blog:http://www.bbrisco.com/2010/09/inet-to-go-private.html
We take pride in our NASDAQ performance and shareholder returns. At the $13.35 offer price, our stock would have appreciated roughly 67% from our IPO. That compares to an overall NASDAQ decline during the same period of roughly -10%. Our management team is proud of our performance and I am proud of them. We are blessed with a great team.
So, why potentially go private again? Because we believe this would be a good deal for our shareholders. Because we would continue to build one of the finest New Media companies in the world and become even more focused on long-term growth. Because H&F would be a great partner. H&F has impressed us with their knowledge of New Media, and with their professionalism, focus, and intensity. H&F Managing Director Andy Ballard has been an absolute pleasure.
[edited by: Brett_Tabke at 6:08 pm (utc) on Sep 20, 2010]
[edit reason] added link [/edit]
Total revenues for the second quarter of 2010 were $28.1 million, a 21% increase from $23.2 million in the prior year period.
Record Adjusted EBITDA: $11.7 million in second quarter...
Net income for the second quarter of 2010 was $4.6 million...
Total monthly unique visitors to the Company's network of websites grew to a monthly average of 62 million in the second quarter of 2010.
They do own vBulletin but also an awful lot of bad websites that they appeared to have paid too much for if you go back through their historical PR section. Looks to me like they have made lots of acquisitions with earn outs or even keeping the individual webmaster on board which surely is going to be problematic at some point. This one made me chuckle "puppydogweb"!
Churn and burn acquisitions without the long-term view. Take on a site and raise the ad rates through the roof.