While some people are focused on selling just domain names, there are people that carefully select one domain name and develop it into a super brand.
This is where the money is, period. If you build the brand, you will make money while the brand is still popular, and if you sell it, well, you could even make much more.
This is what Simon Calver did. He has put his online DVD rental business LoveFilm.com up for sale for an estimated £200m ($327M).
Calver made his mark at Dell Computers before becoming the boss of DVD online rental firm Video Island, which merged with LoveFilm in 2006.
Calver has built LoveFilm.com into Europe’s largest online DVD rental company, with over 1.2 million subscribers. With a seven per cent stake in the business, he stands to make £14m ($23) from the sale if it goes for the estimated £200m.
The remainder of the business is owned by Amazon, Balderton, Index, DFJ Esprit, European Venture Partners and a number of business moguls.
The business has grown rapidly since its inception six years ago and has recently received a number of bid approaches. It has hired Jefferies, an investment bank, to advise on the bids and work on a possible sale.
Lovefilm, with 1.2m members, has become the market leader in mail-order film rental. It has bought out most of its rivals, including a deal last year to acquire the European rentals operations of Amazon, the internet retailer, for £63m ($103m).
Lovefilm’s latest accounts, due to be published shortly, are expected to show that the group generated turnover in 2008 of £73m ($119m). It is understood to be on course for more than £100m ($163m) this year.
Do you have £200m to spare? This is definitely one ebusiness I would seriously consider buying!







Comments are closed.