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According to Andrew at DomainNameWire
http://domainnamewire.com/2007/08/10/creditcardscom-files-for-ipo/
CreditCards.com has filed to raise up to $115 million in an IPO.
The domain name CreditCards.com was sold for $2.75 million in 2005
and then built into a business and resold for more than $130 million in 2006
This is a good example of a generic domain being developed into a valuable business in a short period of time
Generic domains are so valuable,
because they receive targeted type-in traffic from the get-go and
because they’re relatively easy to build an online business on
For instance,
they’re often easier to brand than a domain consisting of a made-up term
From Domain Name Wire: : ::::::::::
CreditCards.com’s S-1 filing is a treasure trove of information about the company’s traffic (they actually have more than one domain driving traffic) and earnings per visitor. In the first half of this year, the company received 5.899M visitors and earned $4.64 per visitor.
(…)
In 2006, CreditCards.com had
$43M in revenues and a net income of
$18.4M.
That[[[[[[[[[That!!!!!!!!!]]]]]]]]] net margin shows
why a business based primarily on a domain name and search engine optimization,
and
which carries no inventory,
is such an appealing investment opportunity.
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http://domainnamewire.com/2007/08/13/domain-roundtable-kicks-off-in-seattle/
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Domain Roundtable Kicks Off in Seattle
Monday, August 13th, 2007
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Mike “Zappy” Zapolin of Internet Real Estate gave his keynote.
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Internet Real Estate sold CreditCards.com for $2.75M in 2004.
The buyer, Click Success, turned around
and sold the domain and its credit card portal
to an Austin Ventures-backed group in 2006 for about $150M.
On Friday,
CreditCards.com announced it plans to go public at a valuation many times that
Zapolin briefly addressed the sale. Rather than kick himself for selling to early,
Zapolin said it’s just proof that there’s still lots of opportunity for domain name investors
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http://domainnamewire.com/2007/08/10/creditcardscom-files-for-ipo/
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CreditCards.com Files for IPO
Friday, August 10th, 2007
CreditCards.com has filed to raise up to $115M in an initial public offering.
Earlier this morning, CreditCards.com, an online credit card portal that built its business around a valuable domain name, filed to raise up to $115M in an initial public offering. Although the exact valuation of the company is not yet known, the company’s S-1 filing with the SEC validates my previous assumption that the 2006 purchase of the company was north of $100M.
In October 2006, we paid approximately $133.8 million in cash (including
approximately $350,000 in transaction fees and expenses) and issued
approximately 2.1 million shares of Series A-1 convertible redeemable preferred
stock at a price per share of $7.82 to the owner of the Predecessor in exchange
for substantially all of the assets of the Predecessor.
That values the company at more than $133.8M.
Internet Real Estate Group sold the domain to Click Success in 2004 for “only” $2.75M. Daniel H. Smith pocketed $97.7M from the sale to an Austin Ventures-backed group in 2006. The purchase by the group in 2006 from Click Success was financed partially with debt from American Capital Strategies
(NASDAQ: ACAS).
CreditCards.com’s S-1 filing is a treasure trove of information about the company’s traffic
(they actually have more than one domain driving traffic) and earnings per visitor. In the first half of this year, the company received 5.899M visitors and earned $4.64 per visitor.
The traffic was up only slightly from the same period last year,
but
revenue per visitor increased 46%:
The increase [in revenue per visitor] was primarily driven by higher number ofIn 2006, CreditCards.com had $43M in revenues and a net income of $18.4M. That net margin shows why a business based primarily on a domain name and search engine optimization, and which carries no inventory, is such an appealing investment opportunity.
offers and conversion rates of website visitors into submitted or approved
applications and higher prices that we negotiated and received from credit card
issuers.
- Posted in Domain Sales by Andrew
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Comments
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RF
August 10th, 2007 10:43 pm
Andrew,
Cannot find the link to the S-1 filing that you discussed in article.
Please post a URL link to the S-1 filing that talk about.
Thank you.
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Andrew
August 11th, 2007 12:59 am
here\’s the link to the s-1:
http://tinyurl.com/yudlar
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