Private equity giant KKR announced plans this morning to buy internet health information giant WebMD Holdings for $2.8 billion, a revenue multiple turning heads in the industry and proving once again the increasing value of revenue generating websites.
The company has just announced preliminary financial results for the three months ended June 30, 2017 showing that second quarter revenue is expected to be approximately $176 million, an increase of approximately 5% from the prior year period. Prior financial guidance for the quarter was $170 million to $173 million. First quarter revenue was $154.1 million, bringing the projected total results for the first half of the year to a projected $330 million, meaning that the deal should be valued at multiple of between 4 to 5 times revenue.
We have always held WebMD as an example of a great revenue generating website. Today’s announcement is just another strong indication of the increasing value of such sites as the market begins to better understand this new asset class.
Read more about the purchase…
Owning revenue generating websites is not just a good investment idea – it’s a great idea! Just ask investors in IAC/InterActiveCorp (IAC) who have seen a dramatic increase in value after their recent purchase of Angie’s List. IAC is a big boy’s model of what we do. They are investing in revenue generating websites – lots of them, and they are doing extremely well.
In terms of performance, as of this writing the stock is up almost 60% since the start of 2017. During the past six months, IAC/InterActiveCorp (:IAC)’s stock has been 53.94% and 90.32% for the last 12 months. Read more details on the FLBC News website…
According to the website, NZ Farmer, milking buffalo can be a great source of alternative income! “We have a few people interested…”, the website stated, going on to say, “Prospects for buffalo milk dairy production had never been more positive…”.
We don’t know about you, but the idea of milking buffalo doesn’t seem as appealing to us as owning a revenue generating website. After all, you have to feed the buffalo and be careful that it doesn’t run over you in the process! But you simply sit back and collect monthly returns from your websites – and, they don’t smell!
So do yourself a favor and buy a revenue generating website. You will probably enjoy it a lot more than milking a buffalo!