Hot or Not acquired for 20 million
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Hot or Not acquired for 20 million
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Re: Hot or Not acquired for 20 million
#24x valuation or do i remember less from accounting than i thought?
Their annual revenue is estimated to be around $5 million, with $2 million in profit.
Doesn't make sense to me.
Re: Hot or Not acquired for 20 million
#34x valuation or do i remember less from accounting than i thought? Their annual revenue is estimated to be around $5 million, with $2 million in profit. Doesn't make sense to me.
4x valuation would be small, i.e. not expecting too much growth.
Re: Hot or Not acquired for 20 million
#44x valuation or do i remember less from accounting than i thought? Their annual revenue is estimated to be around $5 million, with $2 million in profit. Doesn't make sense to me.
I think it's worth less because the founders aren't vesting in the new company or anything; they're quitting.
Re: Hot or Not acquired for 20 million
#54x valuation or do i remember less from accounting than i thought? Their annual revenue is estimated to be around $5 million, with $2 million in profit. Doesn't make sense to me.
3x revenue is pretty standard for businesses that aren't really growing anymore. Seems like a pretty solid deal to me.
Re: Hot or Not acquired for 20 million
#64x valuation or do i remember less from accounting than i thought? Their annual revenue is estimated to be around $5 million, with $2 million in profit. Doesn't make sense to me.
Yea i don't see the point of selling for 20 mill when you are generating that much revenue. It shouldn't take that much of their time to run that thing, I would just let it ride.
Re: Hot or Not acquired for 20 million
#74x valuation or do i remember less from accounting than i thought? Their annual revenue is estimated to be around $5 million, with $2 million in profit. Doesn't make sense to me.
Yea i don't see the point of selling for 20 mill when you are generating that much revenue. It shouldn't take that much of their time to run that thing, I would just let it ride.
I don't see hot or not still pulling in 5M anually four years from now. Hot or Not seems like it's probably going to have a shelf life. While I think you do have an argument, taking the money is probably the best option.
Re: Hot or Not acquired for 20 million
#8Earlier quoted context omitted.
Yea i don't see the point of selling for 20 mill when you are generating that much revenue. It shouldn't take that much of their time to run that thing, I would just let it ride.
I don't see hot or not still pulling in 5M anually four years from now. Hot or Not seems like it's probably going to have a shelf life. While I think you do have an argument, taking the money is probably the best option.
Not only that, but the founders tried to turn it into something huge and failed.
Re: Hot or Not acquired for 20 million
#9The discussion here goes to show how valuations are still stretched. In any "normal" times (i.e exclude late 90's bubble and the mini-bubblet of the last couple of years), valuations like 3-4x revenue would be considered perfectly reasonable, for a relatively mature yet risky play like this (risk because the audience could get bored and leave, as seems to be already happening).
After a prolonged downturn (Japan anyone?) we wouldn't be arguing whether 3-4x revenue is too low. We would be surprised any deal at all got done.
Re: Hot or Not acquired for 20 million
#104x valuation or do i remember less from accounting than i thought? Their annual revenue is estimated to be around $5 million, with $2 million in profit. Doesn't make sense to me.
Yea i don't see the point of selling for 20 mill when you are generating that much revenue. It shouldn't take that much of their time to run that thing, I would just let it ride.
Last year they converted to a C Corp so they can't really pay themselves through the same way anymore.
http://james.hotornot.com/2007/02/on-having-balls-part-ii-st...