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Saturday, August 29, 2009

Philly Newspapers's Domain Name....

.....how much is that domain name worth alone? The Phila Inquirer and Daily News are on the auction block. The Inquirer sells about 300,000-350,000 copies a day while the Daily News sells about 150,000.

But they also own and operate http://www.philly.com/

If you started a business from scratch and also owned this domain name in an MSA with 7-8 million people and two newspapers that drive annual revenue of $120-$150 Million or so, what is that worth? In my business (M&A world), you have to peg or assume a profit rate. Let's use 15% for the sake of argument. That is profit of maybe $20 Million.

Ergo this is a potentially sweet business. I could make this combination work and I don't know squat about the newspaper business except it tends to be run by folks who have problems with capitalism and profit [for examples see Chis Scatullo and Zack Stalberg]. They generally have a million excuses for why they don't have any [profit].

1 comment:

ChocolateGodzilla said...

Forget philly.com I get all the news I need about Philly from you and The700level.