Got $409 million?

[shockym]

This guy does.

Deutche Telekom to Buy Web Host Strato for $400M

I can not believe that something sells for that much, I guess I am not shocked by it but wow. I find it more funny that right now on my day off I am on the phone with a friend of mine that asked if some place wanted to buy me out, what the price would be.

 

[SenseiSteve]

Wow. That's big bucks. Wonder what their ROI is?

 

[Artashes]

I can not believe that something sells for that much

This is a web hosting business that will be there tomorrow and the day after tomorrow. Like food. Between this purchase and a $1.65 billion YouTube purchase, I'd choose a web hosting company any day of the week.

 

[[HB]Andrei]

This is a web hosting business that will be there tomorrow and the day after tomorrow. Like food. Between this purchase and a $1.65 billion YouTube purchase, I'd choose a web hosting company any day of the week.

You're saying that YouTube wasn't worth the investment money?

 

[Devoted Hosting]

You're saying that YouTube wasn't worth the investment money?

Google admitted themselves that they over-paid by $1bn - they value(d) it at around $700m, but for some reason paid $1.65bn.

 

[kronik03]

I wish to one day have that much money

 

[immediate]

What's so special with that hosting company? No clue why it can be evaluated that much.

 

[[HB]Andrei]

Probably depends on the number of their clients...

 

[jlynch]

This is a web hosting business that will be there tomorrow and the day after tomorrow. Like food. Between this purchase and a $1.65 billion YouTube purchase, I'd choose a web hosting company any day of the week.

How about purchasing both. I think that they are probably two different types of investments, one is more the back end of stuff and the other would be what the public sees. They could be a nice complement, if I had $2 bn. :twocents::twocents:

 

[Taba-Volsh]

Let's start saving some funds! lol!

 

[KyleM]

lol. I think they are overpaying, but maybe I don't know too much about that web host.

 

[HostColor]

Well, Strato is a popular name in Europe and a large web host.

 

[ScarabWeb]

Google admitted themselves that they over-paid by $1bn - they value(d) it at around $700m, but for some reason paid $1.65bn.

Google is monopolistic.

YouTube was run by harda$$es - and Google had to offer them more than they expected. Seems straightforward to me.

 

[emorales]

Wow, that is no chump change.

That values them more than most publicly traded companies.

Jeez.

 

[azoundria]

You have 24 hours in a day. What percentage of those are spent on the internet?

By owning YouTube, they now own a certain percentage of everyone's day. Don't tell me that's not worth something substantial.

Not to mention, YouTube is a revenue stream essentially for as long as online videos are still popular. Essentially forever. And 1.65 billion is finite.

 

[rrdns]

$409m may be 2 years revenue for this host. I believe the selling price is usually 2 year revenue.

 

[SenseiSteve]

The selling price depends on lots of factors, not the least of which is recurring revenue. Enterprise class providers have been selling at under 1 year revenue (regularly) this last year.

 

[canes1717]

the 1.65 billion that google paid out as mentioned by devoted hosting is pretty insane, but considering that they are a huge company and have tons of money to advertise their product, the will make their money eventually and have done so very handsomly

 

[vWiz]

That is a substantial amount of money. Especially for a hosting company. I wonder what kind of clients they have?

 

[arbet]

Whoa. That's a lot of money! Deymmmm.