Classmates.com sold for $100 million DAMN!!!! - GoFuckYourself.com

SinisterStudios · 10-26-2004, 08:12 AM

Classmates Online, the Renton company that built a business around uniting high-school alumni, is being acquired by Internet service provider United Online for $100 million in cash.

Executives from both companies said yesterday there will be no layoffs or major operational changes at Classmates Online, which has 175 employees and will become a subsidiary of United Online.

The acquisition is expected to close before the end of the year.

Mark Goldston, United Online's chief executive, said the purchase fit with his company's strategy to expand beyond Internet access.

The Woodland Hills, Calif., company is known for its NetZero and Juno Internet subscription services, but in the past year it has begun offering personalized e-mail domains, e-mail storage and software that speeds dial-up Internet connections.

Prospects: Struggled with turning consumer interest into sales. Of its 38 million registered members, only 1.4 million paid a subscription fee. Could increase that ratio with United Online's arsenal of products.

"We've been looking for a large business that we could buy that would expand that even further," Goldston said.

United Online has had its eye on Classmates for a while. It approached the company a year ago, but Classmates was planning to go public, Goldston said. When those plans fizzled, United Online pursued the company again.

Of particular interest to United Online are the 38 million people registered with Classmates, which acts as a central reunion site for people who went to school together.

The site also connects people who served in the military or worked together.

One of the first Internet businesses in this area, Classmates Online was founded in 1995 and said it has been profitable since 2001.

It reported sales of $54 million for the first nine months of this year and has 1.4 million paying subscribers.

United Online is the second-largest Internet service provider, behind America Online. Goldston said it can grow by selling its products to the Classmates membership base.

"We have a lot of creative ideas that, in concert with (Classmates Online), we can really make this thing more compelling than it already is," he said.

Prospects: Faces tough competition from America Online, the nation's top Internet service provider. Looking to Classmates Online to provide subscriber and sales growth.

Classmates CEO Michael Smith said yesterday that being acquired was the best possible alternative for his company and its shareholders.

"There are more opportunities with (United Online's) financial resources than we would have had on our own," said Smith, who will keep his position with Classmates and report directly to Goldston.

United Online's share price fell 52 cents, or 5.2 percent, yesterday to close at $9.51.

The company also lowered its subscriber targets yesterday and reported quarterly sales that missed analyst expectations.

In a report published yesterday, Calyon Securities analyst Mark Zadell wrote he is skeptical that United Online will be able to generate cash flow growth through Classmates.

"We question the organic revenue growth potential of Classmates, given what we believe to be a limited market," wrote Zadell, who has a neutral rating on United Online.

Classmates' founder and chairman, Randy Conrads, said yesterday he always expected the company would be acquired.

"It was pretty much the tradition of dot-coms," he said. "You either go public or you grow larger one way or another. Either you acquire somebody, or they acquire you."

Classmates' product line works best when attached to other products, he said.

The acquisition was attractive for Classmates' shareholders, particularly because it gives them a near-term cash return, said Paul Goodrich, a managing director with Madrona Venture Group, which first invested in the company in 1999.

"It's an excellent strategic fit with United Online," he said.

skillfull · 10-26-2004, 08:13 AM

shit they will need to spam me everyday now

BoNgHiTtA · 10-26-2004, 08:14 AM

Jesus christ.

robfantasy · 10-26-2004, 08:17 AM

who the fuck uses classmates.com

Extreme Nate · 10-26-2004, 08:19 AM

Quote:

Originally posted by skillfull
shit they will need to spam me everyday now

me too I hate that shit

adamneve · 10-26-2004, 08:21 AM

nice!

Manowar · 10-26-2004, 08:25 AM

thats some nice loot.

xclusive · 10-26-2004, 08:27 AM

I wonder if their rebilling problems will get worse I've heard of them billing even after you cancel..

AdultMovies.bz · 10-26-2004, 08:49 AM

God damn thats some crazy shit, anyone wanna buy BritneySpearsSexTape.com? LOL
I`ll take 99,000,000 negotiable

Sosa · 10-26-2004, 09:23 AM

wow, nice chunk of money right there.

Raf1 · 10-26-2004, 09:27 AM

damn, that's a lot of money.

CraveContent · 10-26-2004, 09:31 AM

Thats a lot of fucking money to get ahold of someone you didnt really like in high school!

NinjaSteve · 10-26-2004, 09:38 AM

100mil from that site? They must be earning some good change then.

Trax · 10-26-2004, 09:46 AM

wow
registered in 16-nov-1994
fuck thats old lol

Jason · 10-26-2004, 09:46 AM

wow.. we got 100M for GreatDomains.com back in 00 when it was sold to Verisign...

That was fun.

Nicky · 10-26-2004, 09:49 AM

100 fucking million, thats insane, they could have bought my Linklist for that instead

Sosa · 10-26-2004, 09:51 AM

Quote:

Originally posted by PornDollar
wow.. we got 100M for GreatDomains.com back in 00 when it was sold to Verisign...

That was fun.

Damn nice

Jace · 10-26-2004, 09:53 AM

Quote:

Originally posted by robfantasy
who the fuck uses classmates.com

actually, a lot of people....i know tons of people that have tried to get me to sign up and shit.....

Dawgy · 10-26-2004, 09:53 AM

Quote:

Originally posted by SinisterStudios
Of particular interest to United Online are the 38 million people registered with Classmates

damn, they coulda got a CD with 50 million names for $19.95

SinisterStudios · 10-26-2004, 09:58 AM

When i was working for IBM in their webhosting division a customer of mine Udate.com sold their company to Match.com for $150 million. The company was about 3 years old when they sold it, talk about a Shitload of money in a short amount of time

ShellyCrash · 10-26-2004, 10:06 AM

Quote:

Originally posted by SinisterStudios
When i was working for IBM in their webhosting division a customer of mine Udate.com sold their company to Match.com for $150 million. The company was about 3 years old when they sold it, talk about a Shitload of money in a short amount of time

I remember that- I was very surprised.

Donny · 10-26-2004, 10:58 AM

Quote:

Originally posted by robfantasy
who the fuck uses classmates.com

I do.

Serge Litehead · 10-26-2004, 11:01 AM

wonder how many members they've got in their pool

TheJimmy · 10-26-2004, 11:02 AM

I just got that special feeling in a special place...

congrats to them, that's RAWKIN

Scherfi · 10-26-2004, 11:08 AM

ytcracker · 10-26-2004, 11:08 AM

Quote:

Originally posted by DonovanPhillips
I do.

me 2

Downtime · 10-26-2004, 11:12 AM

That's incredible - damn! That's some nice retirement money there.

skinnay · 10-26-2004, 11:13 AM

100 million cash?

Strife · 10-26-2004, 11:15 AM

That's a whole lot of money for a site like that...

mardigras · 10-26-2004, 11:17 AM

Quote:

Originally posted by CraveContent
Thats a lot of fucking money to get ahold of someone you didnt really like in high school!

Actually it works the other way around... it's the people you didn't really like in high school that contact you through classmates.com

I've really got to remove my entry over there.

SinisterStudios · 10-26-2004, 12:19 PM

Quote:

wonder how many members they've got in their pool

1.4 million current members

KRL · 10-26-2004, 12:25 PM

Quote:

Originally posted by robfantasy
who the fuck uses classmates.com

Are you serious? Millions of people use it to connect to old friends.

I've used it. Its a great idea.

Chris · 10-26-2004, 12:27 PM

Quote:

Originally posted by robfantasy
who the fuck uses classmates.com

i do lol

foolio · 10-26-2004, 12:32 PM

sweet ass deal -- you do not see that many big time deals anymore these days.

Basic_man · 10-26-2004, 12:38 PM

Holy fuck ! I didn't tought they were that big !

Rochard · 10-26-2004, 12:38 PM

I use Classmates.com. I'm know in contact with nearly everyone I went to High School with. It rocks.

They didn't buy a domain name - they bought a company with 175 employees that's making more than $60 Million a year.

Nanda · 10-26-2004, 12:40 PM

Quote:

Originally posted by SinisterStudios
1.4 million current members

Wow!

AdultNex · 10-26-2004, 12:48 PM

Quote:

Originally posted by RocHard

They didn't buy a domain name - they bought a company with 175 employees that's making more than $60 Million a year.

Smart move.

Doctor Dre · 10-26-2004, 12:50 PM

That site is a fucking mess ... I joined and it keeps fucking up things here in canada

baddog · 10-26-2004, 12:53 PM

$2.63 per verified email . . . double opt-in as I recall

Houdini · 10-26-2004, 12:54 PM

The net must be on the low side if they sold if for $100 million with $54 million in revenue. Nothing wrong with cashing out though, nothing at all.

10-26-2004, 08:12 AM	#1
SinisterStudios Confirmed User Join Date: Nov 2003 Location: New Joisey Posts: 3,087	Classmates.com sold for $100 million DAMN!!!! Classmates Online, the Renton company that built a business around uniting high-school alumni, is being acquired by Internet service provider United Online for $100 million in cash. Executives from both companies said yesterday there will be no layoffs or major operational changes at Classmates Online, which has 175 employees and will become a subsidiary of United Online. The acquisition is expected to close before the end of the year. Mark Goldston, United Online's chief executive, said the purchase fit with his company's strategy to expand beyond Internet access. The Woodland Hills, Calif., company is known for its NetZero and Juno Internet subscription services, but in the past year it has begun offering personalized e-mail domains, e-mail storage and software that speeds dial-up Internet connections. Prospects: Struggled with turning consumer interest into sales. Of its 38 million registered members, only 1.4 million paid a subscription fee. Could increase that ratio with United Online's arsenal of products. "We've been looking for a large business that we could buy that would expand that even further," Goldston said. United Online has had its eye on Classmates for a while. It approached the company a year ago, but Classmates was planning to go public, Goldston said. When those plans fizzled, United Online pursued the company again. Of particular interest to United Online are the 38 million people registered with Classmates, which acts as a central reunion site for people who went to school together. The site also connects people who served in the military or worked together. One of the first Internet businesses in this area, Classmates Online was founded in 1995 and said it has been profitable since 2001. It reported sales of $54 million for the first nine months of this year and has 1.4 million paying subscribers. United Online is the second-largest Internet service provider, behind America Online. Goldston said it can grow by selling its products to the Classmates membership base. "We have a lot of creative ideas that, in concert with (Classmates Online), we can really make this thing more compelling than it already is," he said. Prospects: Faces tough competition from America Online, the nation's top Internet service provider. Looking to Classmates Online to provide subscriber and sales growth. Classmates CEO Michael Smith said yesterday that being acquired was the best possible alternative for his company and its shareholders. "There are more opportunities with (United Online's) financial resources than we would have had on our own," said Smith, who will keep his position with Classmates and report directly to Goldston. United Online's share price fell 52 cents, or 5.2 percent, yesterday to close at $9.51. The company also lowered its subscriber targets yesterday and reported quarterly sales that missed analyst expectations. In a report published yesterday, Calyon Securities analyst Mark Zadell wrote he is skeptical that United Online will be able to generate cash flow growth through Classmates. "We question the organic revenue growth potential of Classmates, given what we believe to be a limited market," wrote Zadell, who has a neutral rating on United Online. Classmates' founder and chairman, Randy Conrads, said yesterday he always expected the company would be acquired. "It was pretty much the tradition of dot-coms," he said. "You either go public or you grow larger one way or another. Either you acquire somebody, or they acquire you." Classmates' product line works best when attached to other products, he said. The acquisition was attractive for Classmates' shareholders, particularly because it gives them a near-term cash return, said Paul Goodrich, a managing director with Madrona Venture Group, which first invested in the company in 1999. "It's an excellent strategic fit with United Online," he said. __________________ SEOIP.com Multiple IP Webhosting Shared and Dedicated IP's - Multiple Class A's - From $1.99/ip

10-26-2004, 08:13 AM	#2
skillfull Confirmed User Industry Role: Join Date: Apr 2003 Location: Quebec Calisse Posts: 4,716	shit they will need to spam me everyday now __________________ mind at underdark dot cc SEO Analyst Thunder-Ball.net - Member

10-26-2004, 08:14 AM	#3
BoNgHiTtA Confirmed User Join Date: May 2003 Location: Seattle Posts: 2,176	Jesus christ. __________________ Wanna see how Adult Site Traffic Scammed me? Click Here:

10-26-2004, 08:17 AM	#4
robfantasy Confirmed User Industry Role: Join Date: Jun 2002 Location: Medellin, Colombia Posts: 6,445	who the fuck uses classmates.com __________________ Looking to speak w/ high volume nutra CPA affiliates or networks... msg me

10-26-2004, 08:21 AM	#6
adamneve LIVING LA VITA LOCA Industry Role: Join Date: Oct 2002 Location: Internet Posts: 13,324	nice! __________________ MetArtMoney.com - #1 Nude Affiliate Program MetArt CCbill Affiliate Tools 4K, HD, UP TO 50 MEGAPIXEL Mobile & Tablet Support Daily Updates HTML5 Tools skype: adamneve8 ICQ# 174167541 AIM: adineve YahooM: adineve

10-26-2004, 08:25 AM	#7
Manowar jellyfish Join Date: Dec 2003 Posts: 71,528	thats some nice loot.

10-26-2004, 08:27 AM	#8
xclusive Too lazy to set a custom title Join Date: Apr 2004 Location: Buffalo, NY Posts: 35,218	I wonder if their rebilling problems will get worse I've heard of them billing even after you cancel.. __________________ I support MediumPimpin.com / Shemp's Outlawtgp.com /

10-26-2004, 08:49 AM	#9
AdultMovies.bz Confirmed User Join Date: Apr 2003 Location: Your Mum's House Posts: 1,036	God damn thats some crazy shit, anyone wanna buy BritneySpearsSexTape.com? LOL I`ll take 99,000,000 negotiable __________________ $8.35 High-Usage Adult Hosting: 510GB Storage + 5010GB Bandwidth + SQL + SSL + Free Domain With Whois Privacy. Use this Coupon Code for extra 25GB Storage Space when you join: 25freegb

10-26-2004, 09:23 AM	#10
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	wow, nice chunk of money right there.

10-26-2004, 09:27 AM	#11
Raf1 Too lazy to set a custom title Join Date: Oct 2003 Location: Writer for hire :) Gallery descriptions, articles, blog posts etc. ICQ: 209 356 106 Posts: 12,117	damn, that's a lot of money. __________________ 80% Revshare or 30$ PPS on $1 trials: 200 Niches = Vidz.com Galleries / FLVs / Embeds 3 & 5mins FLVs \| RSS & Tube Feeds \| Matching Thumbs \| FLV Browser & Exporter \| No Prechecked Xsales >> Mobile Redirection Script: mobile.vidz.com also paying 80% net Lifetime << ICQ: 198-394-557

10-26-2004, 09:31 AM	#12
CraveContent Confirmed User Join Date: Apr 2004 Location: Vancouver Ehh Posts: 319	Thats a lot of fucking money to get ahold of someone you didnt really like in high school! __________________ Crave Content Dave Macdonald ICQ: 224-745-219

10-26-2004, 09:38 AM	#13
NinjaSteve Too lazy to set a custom title Industry Role: Join Date: Dec 2003 Posts: 11,089	100mil from that site? They must be earning some good change then. __________________ ...

10-26-2004, 09:46 AM	#14
Trax [----------------------] Join Date: Aug 2001 Posts: 14,486	wow registered in 16-nov-1994 fuck thats old lol

10-26-2004, 09:46 AM	#15
Jason Confirmed User Industry Role: Join Date: Dec 2002 Posts: 4,287	wow.. we got 100M for GreatDomains.com back in 00 when it was sold to Verisign... That was fun. __________________ I stay busy.

10-26-2004, 09:49 AM	#16
Nicky Judge Jury and Executioner Industry Role: Join Date: Mar 2003 Location: Sweden Posts: 30,069	100 fucking million, thats insane, they could have bought my Linklist for that instead __________________ gfynicky @ gmail.com

10-26-2004, 09:58 AM	#20
SinisterStudios Confirmed User Join Date: Nov 2003 Location: New Joisey Posts: 3,087	When i was working for IBM in their webhosting division a customer of mine Udate.com sold their company to Match.com for $150 million. The company was about 3 years old when they sold it, talk about a Shitload of money in a short amount of time __________________ SEOIP.com Multiple IP Webhosting Shared and Dedicated IP's - Multiple Class A's - From $1.99/ip

10-26-2004, 11:01 AM	#23
Serge Litehead Confirmed User Industry Role: Join Date: Dec 2002 Location: Behind the scenes Posts: 5,190	wonder how many members they've got in their pool __________________ SilverCrocodile.com Adult web design since '05

10-26-2004, 11:02 AM	#24
TheJimmy ICQ- five seven 0 2 5 5 0 Join Date: Jan 2001 Posts: 10,747	I just got that special feeling in a special place... congrats to them, that's RAWKIN __________________ Investor with 5m - 15m USD to invest. Do you have a site or network of sites earning 50k - 200k a month income? Email your contact and preliminary data to: domain.cashventures (at) gmail.com....Please...no tire kickers...serious offers and inquiries only.

10-26-2004, 11:08 AM	#25
Scherfi Confirmed User Join Date: Jun 2003 Location: PornStudio Posts: 868	404 __________________ http://www.fastthumber.com

10-26-2004, 11:12 AM	#27
Downtime Confirmed User Industry Role: Join Date: May 2004 Location: America. Posts: 7,320	That's incredible - damn! That's some nice retirement money there. __________________ #27024067

10-26-2004, 11:13 AM	#28
skinnay Confirmed User Join Date: Apr 2004 Location: NEW YORK CITY Posts: 2,274	100 million cash? __________________ Make Real Green with ORGANIC SEO \| Blog post exchange \| Non-index page trades \| A-B C-D Trades [icq: 194-215-962] [mail: [email protected]]

10-26-2004, 11:15 AM	#29
Strife Confirmed User Join Date: Aug 2001 Location: Canada Posts: 4,534	That's a whole lot of money for a site like that... __________________ Buy & Sell Ads on The Most Sexy Advertising Network on the Planet

10-26-2004, 12:32 PM	#34
foolio ICQ: 178725656 Join Date: Nov 2002 Location: Sunny San Diego Posts: 12,366	sweet ass deal -- you do not see that many big time deals anymore these days. __________________

10-26-2004, 12:38 PM	#35
Basic_man Programming King Pin Industry Role: Join Date: Oct 2003 Location: Montreal Posts: 27,360	Holy fuck ! I didn't tought they were that big ! __________________ UUGallery Builder - automated photo/video gallery plugin for Wordpress! Stop looking! Checkout Naked Hosting, online since 1999 !

10-26-2004, 12:38 PM	#36
Rochard Jägermeister Test Pilot Industry Role: Join Date: Dec 2001 Location: NORCAL Posts: 73,390	I use Classmates.com. I'm know in contact with nearly everyone I went to High School with. It rocks. They didn't buy a domain name - they bought a company with 175 employees that's making more than $60 Million a year. __________________ “The choice is no longer between right or left. The choice is between normal and crazy.” - Sarah Huckabee Sanders YNOT MAIL \| THE BEST ADULT MAILING SOLUTION

10-26-2004, 12:53 PM	#40
baddog So Fucking Banned Industry Role: Join Date: Apr 2001 Location: the beach, SoCal Posts: 107,089	$2.63 per verified email . . . double opt-in as I recall

10-26-2004, 12:54 PM	#41
Houdini Confirmed User Join Date: Dec 2001 Location: SoCal Posts: 1,651	The net must be on the low side if they sold if for $100 million with $54 million in revenue. Nothing wrong with cashing out though, nothing at all.