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Quinstreet acquires

June 10, 2012Domain Sales, Domaining, Domainnamewire, qnst, quinstreetComments Off on Quinstreet acquires

Quinstreet picks up online education lead gen site.

Lead generation company Quinstreet (NASDAQ: QNST) has acquired the web site and domain name

I can’t find any mention — nor a price — for the acquisition in Quinstreet’s SEC filings.

But the seller was, which bought the domain name on eBay for $100,000 back in 2009.

The whois record for changed between May 19 and June 2, according to historical whois records at DomainTools.

Intriguingly, the site’s Terms of Service show a last update of May 17, 2011, despite the terms referring to Quinstreet.

Some of Quinstreet’s previous acquisitions include: for $49.7 million in 2010 for $35.6 million in 2010 for $16 million in 2009

© 2011.

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Verdict: $35.6 Million Acquisition Wasn’t Just The Domain Name

August 10, 2010Domain Sales, Domaining, Domainnamewire,, quinstreetComments Off on Verdict: $35.6 Million Acquisition Wasn’t Just The Domain Name

Quinstreet is clear about what it acquired when it bought It wasn’t just a domain name.

I just finished listening to Quinstreet’s investor conference call from last night, in which the company reported it paid $35.6 million in total consideration for

Now the big question, as others are debating right now: How much of this was for the domain name? Was this a domain name purchase at $35.6 million?

The answer to the second question is pretty clear: no. The value wasn’t just in the domain name. On the call, Quinstreet repeatedly referred to the acquisition as a “media asset”, and that was “a web site, media, and technology assets”.

It’s important to understand the history of It was previously run as an insurance agency, actually selling some policies direct to customers. Quinstreet didn’t buy the agency. Contrary to earlier reports, Quinstreet didn’t layoff anyone because of the acquisition; the report of layoffs was from the owner of the agency, which Quinstreet did not acquire.

Quinstreet usually doesn’t acquire “revenue” in acquisitions. It says it “buys media and then turns it into revenue”. The average cash-on-cash return for acquisitions is 35% at the company. The transaction would return 20%-30% on the company’s conservative acquisition model, although Quinstreet says it’s blowing through that number. The acquisition model assumed the loss of a lot of affiliate revenue and leads, but very little of that has been lost.

In fact, in response to an analyst question “aren’t you just buying the domain name”, Quinstreet responded “this is not a domain name”. It wants to build on the existing content and platform.

Bottom line: Quinstreet bought a web site that has a killer domain name associated with it. That killer domain name is one of the reasons is what it is today. But if another site got the same amount and type of traffic, Quinstreet probably would have paid the same thing.

© 2010.

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Company That Bought Files to Go Public

November 19, 2009Domaining, Domainnamewire,, quinstreet, UncategorizedComments Off on Company That Bought Files to Go Public

Quinstreet files to go public.

Quinstreet IPOLead generation company Quinstreet, which bought the web site for $16 million in October, has filed for it initial public offering.

In its S-1 Securities and Exchange Commission filing for the IPO, the company reported fiscal year 2009 revenue of $261 million with a net income of $17 million.

Quinstreet notes little about the acquisition in its S-1:

In October 2009, the Company acquired the website business of, a Nebraska-based online marketing company, in exchange for $15 million in cash paid upon closing of the acquisition and a $1 million non-interest-bearing, unsecured promissory note.

The transaction is one of nearly a hundred acquisitions the company has made over the past two years, and the company isn’t stopping there:

Our growth over the past several years is in significant part due to the large number of acquisitions we have completed. Since the beginning of fiscal year 2007, we have completed over 100 acquisitions of third-party website publishing businesses and other businesses that are complementary to our own for an aggregate purchase price of approximately $189.5 million. We intend to pursue acquisitions of complementary businesses and technologies to expand our capabilities, client base and media.

The company plans to list on NASDAQ under the symbol QNST.

© 2009.

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Silicon Alley Insider Values GoDaddy at $1.4 Billion, at $1 Billion

October 29, 2009Demand Media, Domaining, Domainnamewire, GoDaddy,, quinstreet, UncategorizedComments Off on Silicon Alley Insider Values GoDaddy at $1.4 Billion, at $1 Billion

A number of domain name companies land on valuable start up lists. But SAI didn’t do its homework.

Silicon Alley Insider has released its latest list of the world’s most valuable startups, which includes a number of domain name companies. But I question the validity of some of its assumptions because of some glaring errors, such as saying that hasn’t taken any outside funding.

The top domain name company on the list is GoDaddy at #9. The valuation is based on estimated 2009 revenue of $700 million with a two times revenue multiple. It’s a very basic valuation technique, but it’s hard to peg revenue and valuation number on private companies. By comparison, Inc. magazine shows GoDaddy’s 2008 revenue at about $500 million.

Coming in right behind GoDaddy is Demand Media and its highly automated content generating system at $1.3 billion. Demand Media also owns domain name registrar eNom. SAI says it has confirmed that about 10% of Demand Media’s revenue comes from domain parking.

Also at a $1.3 billion valuation is Quinstreet, the lead gen company that just bought insurance web site for $16 million., parent company of Moniker, DomainSponsor, and Snapnames, comes in at #16 with a $1 billion valuation. SAI estimates Oversee will bring in $200 million in revenue this year. But it also says that the company hasn’t taken any outside funding. It has. So I question SAI’s analysis.

© 2009.

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