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It was announced today that Playtech is purchasing PokerStrategy.com, the massive affiliate site, for $49.8 million USD. Pretty massive coin for an affiliate!
As one of the world’s biggest gaming platform providers, Playtech should be able to use it newly acquired access to PokerStrategy’s 6 million+ members to send plenty of business to its existing client base.
Check out the article here to learn more
What do you think? Is PokerStrategy worth nearly $50 million dollars?
Pokerstrategy was long established and a very profitable enterprise.
It sold for €38m … and it’s annual profits were about €19m.
So it only sold for 2x annual profits. That’s low compared to most industries.I am surprised at the low value, as bog standard low quality affiliate sites are selling in the 1 to 1.5x annual profit range, and they have a lot of risk attached with no brand and almost total dependence on Search engines for traffic.
In my mind PokerStrategy had enough of it’s own brand value to negotiate a price premium but didn’t manage it. That puts a definitive market ceiling on affiliate site values I think.
Basically, I would not sell my sites for 2x annual earnings … how about you?
:huh2:@TheGooner 252407 wrote:
Basically, I would not sell my sites for 2x annual earnings … how about you?
:huh2:I would not even entertain any offers in that area at all !
