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View Full Version : Godaddy on sale



calilifestyle
09-10-2010, 05:23 PM
http://news.yahoo.com/s/nm/20100910/wr_nm/us_godaddy

this is crazy in a way.

Titus
09-10-2010, 08:32 PM
From the article:

"The privately held company could fetch more than $1 billion in an auction, the report said, citing people familiar with the matter."

and then

"The company posted _revenue_ between $750 million and $800 million in 2009, the report said."

I don't get it! why they sell it for a billion if they almost make the same in a year?

Hopper
09-10-2010, 08:59 PM
I don't get it! why they sell it for a billion if they almost make the same in a year?
It's a privately held company. That means instead of taking their "cut" off the top of revenue, they (owners) are cashing out while the company is still viable. Although "they" made ~$700 million in a year, that money goes back into the company for operating costs for the next year, thus the owners only see a small percentage of that income (although that percentage is still a pretty big pile of money).

Depending on market trends, economic indicators, and projections, the owners may feel that this is their forecasted "peak", hedging their bets for a guaranteed payout. For a buyout, the owners get ALL the proceeds from the sale of the company.

Basically.. "Ding!... goal obtained - now let's get the hell out while we're on top and the company is worth the most it will ever be."

DiscreetFX
09-10-2010, 11:12 PM
It's going to sell for cheap and some asses will shake.

:)