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Indeed, revenue multiples are dangerous. I’m guessing they bought it at a significant ebitda multiple making the deal sweet for the sellers. However, the privat
by formercoder 7y ago
Indeed, revenue multiples are dangerous. I’m guessing they bought it at a significant ebitda multiple making the deal sweet for the sellers. However, the private equity MO is going to be value creation through margin improvement. When they flip it their proceeds will be much sweeter. They’ve most likely modeled in multiple contraction as that’s rather common with tech buyouts these days. If the market stays hot they make a killing.
- ddingus 7y agoIf they simply make something more lean, no real impact to domain name holders, fine. There is some value there. But, nobody drops numbers that large without very fully exploiting what they see as an opportunity. The opportunity is to raise prices to max market will bear, then flip it. Given the intent behind .org, this is artificial value, created out of both position and leverage. I am beginning the work to be rid of my .org That will cost me. Fine. I abhor this kind of thing. A lot more money will move unnecessarily. I do not want to be a part of that.