Search - Wednesday, May 31, 2006
Marchex Pays $13M For Losing Biz With Revs of Just $150K
Open List, an online hotel & food review search and content aggregation engine has been bought by Marchex for $13M. Marchex has been domain squatting and plans to run Open-list's content on domains it owns like: lasvegasvacations.com, 90210.com, newyorkdining.com, frenchrestaurants.com, and chicagoluxuryhotels.com.
OpenList is a bit of a mystery. It's portal gets very little traffic. Given how long it has been in business, we would see this as an indictment of its technology. On the other hand, it has been able to white label its technology to sites like Boston.com. Still, we don't get how these guys were able to land such a sweet multiple on earnings.
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"multiple of earnings"? were there any??
Posted by: MM at June 1, 2006 08:36 AM
There must be more to this story. How can Marchex possibly justify paying 87 times 150K *revenues*?!?
Maybe you lost some zeroes somewhere :)
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