| Paul Markham |
07-24-2011 02:15 AM |
Quote:
Originally Posted by Shap
(Post 18297526)
Having been in the business for 15 years we've had our fair share of offers come our way. If you want to use my business as an indication for how the industry is fairing here is what i can say.
At the time of the sale we had record months for both revenue and profit.
The deal we got was both the best I've seen in terms of multiple, dollar amount and terms that I've ever seen.
Just as it would be a mistake for you to assume I sold for cheap it would be a mistake for someone to take our deal as an indicator for the industry's health. I think for the majority of the industry it's a very rough time right now. For the small group that are making very big buck business is, probably, better than ever and they are getting hit up constantly about selling (and most likely at very tempting $$$).
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The only indication we have that's reliable was what Joe sold Adult.com for. The whole business. To our knowledge it was $9 million. In terms of online and a big porn business at it's peak. That's not very good. Not a bad chunk of change, but not good.
I think this industry is shrinking and those doing well are doing so by picking up the traffic others have left. I see no indication of the whole online porn industry turning over more every year.
Are you saying the Tubes are adding sales to the whole pot or taking them away?
I understand the Tube owners don't care. Just saying it isn't a good business model. |
