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What do you guys think about this!!!!
- Thread starter Big Rick Rock
- Start date
bran987
New member
holy crapBig Rick Rock said:
that is unbelievable to me BRR
$100 million for a site that is saying they EXPECT $100 million in SALES in 2008.
That is a price you pay for a REAL company.
That implies that they paid $100 million for somewhere between 50-99% of the company (assuming there are no other large shareholders, but that would only decrease the percentage and make the sale even more huge).
For a company that will maybe bring in $100 million MINUS expenses for the year.
I don't know what typical earnings are for a website like this but typical profit margins on a company are somewhere like 10%.
So 10% of $100 million would be $10 mil.
they bought a controlling interest for $100 million for let's say for the sake of argument 51% of the company. Maybe $5.1 million in earnings.
I can only assume that either bodybuilding websites, (or this particular bodybuilding website) has above average net margins (i.e. above 10% of sales), or that Liberty Media sees massive growth possible in this sector over the next few years.
VERY interesting link BRR, awesome.
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