Categories: OLD Media Moves

Business.com could fetch $400 million

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.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

View Comments

  • Adding another asset to the pile to raise the bid price perhaps? This resembles the strategy the Chicago Cubs are using by stockpiling good players that should raise the overall value of the team even when they don't win any more than before.

  • Hi Chris
    I am sorry -but I can't agree with you.
    According to surveys, most developed countries spend 40% of their advertising budget online as it is where the future lies. That figure is going to increase substantially with more internet penetration in other countries.
    IMHO, Business.com - provides the single largest targetted ads after Google and their portfolio/traffic is increasing by the day. If some-one pays $350 million - that would be an investment for the future.:smile: I wish I had the bucks.

    PS: I made a comment earlier on this topic and gave a URL pointing to the recent interview by Jessica Bowman, Director of SEO, Business.com where she provides a rare insight into the inner-functionality of the site.
    Can you please publish it -as most probably its in the moderation page due to the URL.

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