The Wall Street Journal notes that the business.com domain could fetch $300 million for owners Jake Winebaum and Sky Dayton, on a $7.5 million initial investment. Meanwhile, everyone is poo-pooing the thing.
Assuming what the Journal says is true and the site is pulling in roughly $15 million in EBITDA…
Techdirt says “At this point, there’s a little more here than just a domain name, but it’s still hard to tell how much of a business business.com actually is.”
Meanwhile, a Wired reporter didn’t even seem to have read the story, when creating the title for criticism “Domain Madness: Business.com For $400 Million?“.
The list of goes on, but the point is clear: if you don’t have fifty AJAX “widgets” scattered across the site a designer charged you $250,000 to create and/or just announced a “lucrative business development relationship” with someone who does (even if they’ve blown through tens of millions in VC money and still don’t have a dime of revenue to show for it), your business is not worth two-cents. I will say that 20X EBITDA is a bit dear for a company growing 50% per annum, but still the context of the naysaying doesn’t get near this point.
Beauty is skin deep, and elegance eventually trips on the runway. Meanwhile, ugly seems to be going to the bank.
UPDATE: Mike Arrington chimes in with a more credible tone, and a snack for thought.