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…
In yet another indication of the growing power of online over bricks and mortar, it was announced today that Amazon is buying buying Whole Foods in a deal worth about $13.7 billion. Only a month ago, problems started becoming evident that resulted in a board shake-up and the implementation of cost cutting measures due to falling sales.
What to expect next? Maybe ordering your groceries through Alexa and having them delivered by drone? Only time will tell, but the move provides further evidence of the tremendous shift from traditional sales channels to online.
We love the idea of getting paid by our revenue generating websites, but multiple streams of income are always a good goal. That’s why we started looking into some of the more “far out” ideas we have seen recently in the world of crypto currency. Crypto currency, such as the Bitcoin, are certainly not for everyone, but if you would like to know more and follow what we are seeing, we have just set up a new site called CryptoBuyer. If you are interested in such things, feel free to check it out.
Exchanging money between currencies is not only a mystery but can be a very expensive proposition. It turns out that there is not just one rate of exchange between currencies, but many – it all depends on who you go to for the transfer. Before TransferWise, money transfer was the domain of the banks, and unsuspecting users are still often charged exorbitant fees just for the pleasure of changing from one currency to the other using their “friendly” local bank.
New services began to emerge that promised to save money over what the big banks charge. But the problem was that many still did not disclose their fees, and their base rates were often inflated. And most of them required multiple telephone calls and a lot of paperwork each time a transfer was initiated. It’s a big problem for those who need to move money around, and fortunately Taavet Hinrikus, the first original employee of Skype, came up with the TransferWise solution.
He reasoned that if a solution could be found through peer-to-peer transfers, where users was matched with someone who had the currency they wanted, it would be possible to dramatically lower rates. But he took it another step forward, offering complete transparency – allowing users to see the “real” rate as posted on financial websites and adding a small fee for the transfer.
Apparently it was a good idea, because people like the service! Since learning of it, TransferWise has become our “go-to” currency transfer service. And we’re not alone, because over $1 billion has been transferred using the system so far, saving users almost $60 million in fees. Expat, overseas student or doing business between countries? TransferWise should be welcome news!
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!
In another indication of the growing worldwide digital economy, the website Dutch News says that consumers in the Netherlands spent over €1bn shopping online in 2016 – in other European countries! According to the a survey, more than 80% of purchases NL purchases were from EU sites of neighboring countries. Read more…
A new study, just released in the UK, suggests that as many as 20% of automobiles may be bought online within the next 10 years. It goes on to say that Internet car sales could cost UK dealers as much as £41bn ($53bn) in revenue if this takes place. This tracks with the revolution in the US led by Carvana, the self-described “Amazon of Cars” that recently filed for an IPO. Find out more…