It’s good news all round for b2Media co founder Duncan Riley, who last night sold his site, Inquisitr.com for $330,000 on Flippa to an ‘unnamed Israeli media buyer’. The site received a relative amount of ‘comment action’ but ended with only 1 bid and at time of writing is “sold pending settlement via Escrow and transfer of assets”.
For anyone unfamiliar with the site, The inquisitor is a 3 year old Google News approved blog, that covers general interest topics around tech, entertainment, sport and humorous stories.
At time of listing, it claimed $15,449 in monthly revenue from 1.4 million unique visitors and over 7 million average monthly pageviews. The Inquisitr used a combination of pay per click, in-context text links and display advertising to generate revenue from a variety of advertisers.
Out of the largest 100 sales on Flippa in the last year, many seem to be for sites which focus on content, and use advertising as their primary form of revenue generation. This has endless appeal to a larger buyer who wants to incorporate the site into an existing portfolio, rather than operate it as a standalone project, simply because it’s the easiest setup to run alongside other sites. There’s no team that needs to come with the acquisition (except maybe writers), no stock, premises and most of all, there’s little technical knowledge required to run the site.
As far as the defacto figure for valuing online only businesses goes, this site sold for a 21x monthly revenue multiple which certainly puts it far ahead of other sites currently being sold on Flippa between $50K and $400K. However, in the offline world where businesses seem to be valued around 4x EBITDA (~ Net profit ), Inquisitr sold for just 1.8x net which would value it at the lower end of businesses overall. This is yet further evidence that whilst Internet businesses continue to be undervalued by the market as a whole, the opportunity still exists to get a ‘whole lot of business for your dollar’.
Alternatively, if you decide to sell, try renting an office, filling it with staff and see if that improves your multiples when you sell to the offline world!