Insider Values GoDaddy at $1.4 Billion, Oversee.net at $1 Billion — Silicon Alley
A number of domain name firms 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 firms. But I question the validity of some of its assumptions since of some glaring errors, such as saying that Oversee.net hasn’t taken any outside funding.
The top domain name firm 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 firms. By comparison, Inc. magazine shows GoDaddy’s 2008 revenue at regarding $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 states it has confirmed that regarding 10% of Demand Media’s revenue comes from domain parking.
Also at a $1.3 billion valuation is Quinstreet, the lead gen firm that just bought insurance web site Insure.com for $16 million.
Oversee.net, parent firm 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 states that the firm hasn’t taken any outside funding. It has. So I question SAI’s analysis.
