Dennis Berman of The Wall Street Journal writes Friday that media companies such as Dow Jones & Co. and The New York Times could bid as much as $400 million for the business.com web site, which is on the block.
Berman wrote, “Business.com does the kind of things publishers are trying to do more of: Drive readers to spend money with merchants who will pay a bounty for the traffic.
“Their interest shows how, well into the Internet age, media companies are still eager for properties that can deliver online revenue and growth. Business.com, Santa Monica, Calif., has 2007 earnings before interest, taxes, depreciation and amortization of about $15 million, the people familiar with the matter said, with its online traffic growing by 50% in the first quarter of 2007, compared with the year earlier.
“The people familiar with the matter say that the final price for Business.com is hard to predict. But at $350 million, a deal would value the company at some 24 times cash flow. Credit Suisse is running the auction.”
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