Internet Marketing

Disney just paid $350 for this site, and may pay another $350M for it in 2009!

December 1, 2007 by Ian Brown No Comments

Wow. I just read that Disney just paid $350 Million upfront for ClubPenguin.com, a site that allows kids to customize penguin characters, and then chat and play games with other characters. And Disney says that it will pay them another $350M at the end of 2009 if their growth projections are met.

With 700,000 members paying $5.95/mo. that’s a nice sales price whoever negotiated that. Warren Buffet does say that you should be able to sell your business for up to 10 times the annual revenue, which would make it $500,000,000. So, both sides did a great job negotiating. If the projections are met, the founders get $700M for 2 years of work (founded in 2005). And if the projections are not met, Disney gets a nice discount.

Source: NY Times Article

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Written by Ian Brown
Ian has been involved with computers since very young. He took his first computer class when he was just 8 years old. He always had an affinity for computers, but never really took it seriously. It was not until he graduated from college and experienced the real world for a while did he realize that computers may be where his talent and passion lie. He has since branched out into Internet marketing and LOVES it. He currently resides in Los Angeles where he services clients ranging from residential to small business to celebrities.