party buys empire online websites

i made the following post in the general section. i am not getting any responses regarding what i am talking about. valuation of online poker and casino businesses…..maybe a discussion would ensue here instead??

http://www.bloomberg.com/apps/news?p…f7wXM&refer=uk

Party Gaming is paying for theses assets by way of
an issue of its own shares – in total, 115,193,842. At the time of writing, the share price of Party Gaming at the close of 2006 stock market business was 31.75p, making the total value of the purchases worth approximately £36,500,000 or US$72,000,000.

Party Gaming says it expects the businesses and assets being acquired to generate “Clean EBITDA” (earnings before interest, tax, depreciation and amortisation) of at least $8,500,000, comprising $6,000,000 from Empire Online and $2,500,000 from Intercontinental, with these being earnings-enhancing in 2007.

if i read that correctly they are paying 8.5 times earnings for Empires websites, player bases, and business. Seems a lot of affiliates were jumping ship at 1 times earnings. I imagine the affiliate businesses depending on how they are demographically should fall somwhere between the 8.5 that party paid and 1 times webmasters have been selling at. I think a lot of buyers got some sweeeeeeet deals lately!