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PokerStrategy Purchased for almost $50M: Worth It or Not So Much?

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  • #833841
    Anonymous
    Inactive

    Pokerstrategy was long established and a very profitable enterprise.

    It sold for €38m … and it’s annual profits were about €19m.
    So it only sold for 2x annual profits. That’s low compared to most industries.

    I am surprised at the low value, as bog standard low quality affiliate sites are selling in the 1 to 1.5x annual profit range, and they have a lot of risk attached with no brand and almost total dependence on Search engines for traffic.

    In my mind PokerStrategy had enough of it’s own brand value to negotiate a price premium but didn’t manage it. That puts a definitive market ceiling on affiliate site values I think.

    Basically, I would not sell my sites for 2x annual earnings … how about you?
    :huh2:

    #833844
    wbprofits
    Member

    @TheGooner 252407 wrote:

    Basically, I would not sell my sites for 2x annual earnings … how about you?
    :huh2:

    I would not even entertain any offers in that area at all !

    #833858
    gerelas
    Member

    Right, but sensing saturation in the iPoker market, I think PokerStrategy has made the right business decision. Now they can focus on other verticals, like their forex education portal, tradimo.

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