$350 Million Acquisition – CreditCards.com and NetQuote
By Alan on Jul 27, 2010 in Domain Sales
Bankrate, Inc. announced on June 24 they will acquire CreditCards.com and NetQuote for a combined $350 million. This is a monster deal (and not a domain sale for you blokes who think every company sold with a .com is a domain sale).
According to compete these 2 sites have over 2,000,000 unique visitors a month in the lucrative financial and insurance industries.
The breakdown was:
$205 million for NetQuote
$145 million for CreditCards.com
So – you still want to park your domains?
There is lots of money around if you build. Maybe not $350 million but surely a few if you do it right. This news is a month old – from June 24th – and I totally missed this being reported anywhere. Congrats!
Personally I think creditcards.com is worth a lot more than $145 million
More here:
Bloomberg Article - WSJ online edition (must be a subscriber)
Leonard Britt | Jul 27, 2010 | Reply
True development can make more than a parked page but you have to go beyond minisites.
Troy: | Jul 27, 2010 | Reply
“(and not a domain sale for you blokes who think every company sold with a .com is a domain sale).”
LMAO. I was thinking the EXACT same thing when I read your headline. I can still remember those bozos talking about how $170 million for Mint.com meant end users were finally “Getting it”=).
In my opinion, most domainers need to “get it” more than the end users.
Alan | Jul 27, 2010 | Reply
Troy,
Most domainers never will and thats better for those who do.
You should enjoy this link also about SEO
http://www.seobook.com/portrait-seo
Troy: | Jul 27, 2010 | Reply
Loved it. Where am I? Where am I?
Attila | Jul 28, 2010 | Reply
Your right, you would imagine the domain community would be eating up news like this. They made the news of o.co and its tiny $350k sale look like someone bombed pentagon again while this whopping 350 million was never heard of…
Just goes to show whose behind the politics pulling strings. That news “just” happen to come one day before dot co opened registrations.
Big HMMMMMMM….
Elliot | Jul 28, 2010 | Reply
“you would imagine the domain community would be eating up news like this.”
Yes… the minute I write an article that CreditCards.com was acquired for $350m, I would get 20 comments about how it wasn’t the domain name that sold. People read and interpret the things they want.
Can’t win either way, although I didn’t even see this news until I read your blog.
Jerry Russell / Floname | Jul 28, 2010 | Reply
It’s news like this that might convert domainers into end users! I personally am making the transition and I’m blogging about it. I hope to bring new insight into the domaining community & and inspire domainers to get off their asses and create value within their names.
Great reporting! Cheers
Jack | Jul 28, 2010 | Reply
Looking at NetQuote, one wonders how long before someone goes out and does exactly the same with a domain like GetAQuote.com
Jeff Edelman | Jul 28, 2010 | Reply
Obviously, this isn’t a domain sale. But the domain name does account for many, many millions of dollars of this site’s value. There’s no way a site like this cost millions of dollars to develop. It wouldn’t require significant manpower nor technical expertise nor ongoing significant operating costs to tie this entire site together. The domain name is the backbone here that enabled a relatively small investment of manpower and dollars to result in a $145 million dollar sale.
Jeffrey | Jul 28, 2010 | Reply
To Jeff Edelman,
You said “There’s no way a site like this cost millions of dollars to develop. It wouldn’t require significant manpower nor technical expertise nor ongoing significant operating costs to tie this entire site together.”
Are you kidding me?
Both of these businesses cost many 10′s of millions of dollars to develop…..they spent over $500 million in marketing dollars over the years……allocated significant resources to vendor relations……likely employed several hundred employees over the years…..spent an enormous amount in legal fees, executives, office space, computing/servers/bandwidth, etc.
The domain name WAS NOT the backbone of these transactions. The backbone was the business, comprised of a team of executives who could execute and generate significant revenues.
Did the domain name add value to these transactions, sure…..but in my humble opinion it was the business that made up almost the entire sale amount.
Without the business I estimate CreditCards.com is only worth $10m max and NetQuote.com only $1m max.
Afif | Jul 28, 2010 | Reply
Why would you think the domain NetQuote.com has a potent value of 1M? I wouldn’t have given it a 2nd glance even if it was listed in DNF’s below $100 forum sales thread. Then again that may be just me.. ^^
Jeffrey | Jul 28, 2010 | Reply
I don’t think NetQuote.com alone is worth $1m. Possibly several thousand dollars, but not much more, assuming it had no prior branding. Just placing a max value on this domain so it did not become the arguing point.
As for CreditCards.com – without any prior branding or exposure…..it is worth $10m to the right company. A company who can execute and create real value out of that asset.
David | Jul 28, 2010 | Reply
I wish there was a way to break-down the sale so we know the value of just the credit card domain. Is that kind of information disclosed in the required SEC disclosures.
Alan | Jul 28, 2010 | Reply
David,
Curious – why would knowing this make any difference? Every domain sale is unique.
If creditcards.com standalone is worth $20m which we all know it is does that make icreditcards.com or ilovecreditcards.com worth any more?
The answer is no.
I can understand people wanting to know this for curiosity but its not very relative in the big scheme of things to anyone but domain sellers .. note I said sellers, not buyers. They will pay how much they think a name is worth – not how much a seller does.
David | Jul 28, 2010 | Reply
LOL. I find it kind of amazing you would think it odd that I would wonder what the domain name was worth vs the business and its website?
IMO, most everyone would be wondering about that and like to see a break-down of the sale.
Fahad | Jul 28, 2010 | Reply
Yes, Sure Development will make more than a parked
- Anyway I have Premium Domain Names with High-Traffic , I look forward to develop.
Alan | Jul 28, 2010 | Reply
David,
I’m not a hardcore domainer so watching sales reported on DNJournal.com or even learning about the sale of these names really means very little to me when wanting to value a domain.
As I said, I understand why some people do but not me – ironic as that is I guess. However that irony is based on the assumption I am someone who JUST buys and sells domains which is far from the truth.
Stephen Sildon | Aug 9, 2010 | Reply
No offense, but many of you domainers really have no clue about the true value of some of these websites. These are real businesses with real revenue. CreditCards.com generates tens of millions of dollars in card application revenue annually. Any business whether it’s a parked domain or an actual website generating revenue over and above PPC advertising is based largely upon a multiple of it’s income stream and it’s growth rate. CreditCardGuide.com sold for $35 million in the fall of 2008. The site was generating $10 million+ in card application revenue alone at the time of sale. CreditCards.com was easily generating $30 – $40 million in card application revenue annually. Believe it or not, at $145 million that was a steal for Bankrate.
Alan | Aug 9, 2010 | Reply
Ah ha — Well said Stephen .. Well said
Sherry | Aug 19, 2010 | Reply
You guys seem to know what you are talking about .. I need advice from someone knowledgable in this field.
I would like to list my domain for sale .. but have no idea what to list it for. Any suggestions? Domain is http://www.homeloanassociates.com