Re:ISOC sold the .org registry to Ethos Capital for $1.1B
by formercoder on Saturday November 30, 2019 @02:25AM
(#21668985)
Value is created by private equity buyouts through operational improvements.
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Re:ISOC sold the .org registry to Ethos Capital for $1.1B
by harry8 on Saturday November 30, 2019 @03:40AM
(#21669149)
Have you seen my bridge? It's actually for sale! It's crying out for your operational improvements to really get it monetized...
Re:ISOC sold the .org registry to Ethos Capital for $1.1B
by tobltobs on Saturday November 30, 2019 @03:59AM
(#21669188)
That is a very naive view of private equity buyouts.
The domain business of .org is run by Afilias, they pay about $2 per year for a domain. That is a extremely low price and it would be very difficult to manage to get a lower price anywhere. In fact Afilias might not be motivated to continue with such a generous price if they are a for profit registry now.
In reality value is created by private equity buyouts through an aggressive use of debt, which provides financing and tax advantages and freedom from restrictive regulations.
Re:ISOC sold the .org registry to Ethos Capital for $1.1B
by dreamcompiler on Saturday November 30, 2019 @01:39PM
(#21671457)
Please cite a case where this has actually happened.
Re:ISOC sold the .org registry to Ethos Capital for $1.1B
by formercoder on Saturday November 30, 2019 @06:17PM
(#21672689)
Most of the information is not public, there are a number of HBS cases with relevant data but they are all behind paywalls. If you do the math, it's clear that ebitda margin improvement, top line growth, and multiple expansion have a much larger impact on returns than debt paydown. Here are some highly quick and dirty numbers (initial equity value is negative bc it's plugged straight into IRR()): https://imgur.com/lGCs5aR