Valueclick Acquires

December 4th, 2006 by Chris

This’ll be a quick post.

It was announced today that Valueclick would acquire for 13.3 million. Valueclick estimates to contribute 2 million in profit to it’s business.

Two things I want to mention here are:

1. So much for those people trying to value large established sites as something ridiculous like 12 months of profit. This valuation is at over 5 years of profit.

2. An ad network buying a network of content sites? Makes sense from the business perspective, and many ad networks grew out of large content networks, but I can’t remember any acquisitions like this. The ad network still gets to serve the ads, only now they keep all of the revenue. Can anyone remember any similar acquisition? I imagine there will be more.

2 Responses to “Valueclick Acquires”

  1. ToddW  Says:

    Now if this only would mean higher payouts from ValueCrapclick ;)

  2. Dan  Says:

    From experience, building an ad network with a significant percentage of owned sites was seen as the holy grail some time ago. Quality sites, 100% revenue “split” and the freedom to do anything an advertiser wanted as an “exclusive site” are big draws.

    I have seen this attempted, building from scratch, however the only problem has been that the person or organization trying has no clue about building and marketing websites cost effectively, nor did they realise that once developed, a site would not mushroom if you leave it.

    Acquisition at the right stage, especially with a pre-existing operation and profitability, seems foolproof.

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