Quote:
Originally Posted by Eman - PG
In 2006, it (Lexico Publishing Group) generated revenues of $7 million, EBITDA of $2.9 million and net income of $2.8 million.
They got 14x yearly revenue. That's pretty damn good for an online business based on ad revenue.
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14x is good - but I suspect the new owners see ways to match up the sites with things that they have going on to increase the overall revenue. That is the key to a deal like this, the feeling and the plan to make more than the site(s) currently make when you buy them.
As others have said, hopefully any changes made to the sites won't take away the utility and make them worthless. I use it all the time when playing scrabble (nice to have a laptop to settle disputes!)