Comments on: CD Baby Acquisition for $22m Was Way Too Cheap http://crenk.com/cd-baby-acquisition-for-22m-was-way-too-cheap/ Web Apps, Mobile Apps and Reviews Sat, 20 Mar 2010 00:22:19 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Sneak Peak: CDBaby Launching New Website Next Month http://crenk.com/cd-baby-acquisition-for-22m-was-way-too-cheap/comment-page-1/#comment-44914 Sneak Peak: CDBaby Launching New Website Next Month Fri, 03 Jul 2009 09:15:05 +0000 http://crenk.com/?p=1209#comment-44914 [...] at digital music store CDBaby they have been making a lot of changes recently. Since the sale of the company the site itself has been going through a lot of changes. A while ago CDBaby announced to their [...] [...] at digital music store CDBaby they have been making a lot of changes recently. Since the sale of the company the site itself has been going through a lot of changes. A while ago CDBaby announced to their [...] ]]> By: Derek Sivers http://crenk.com/cd-baby-acquisition-for-22m-was-way-too-cheap/comment-page-1/#comment-12331 Derek Sivers Mon, 03 Nov 2008 00:40:06 +0000 http://crenk.com/?p=1209#comment-12331 Revenue is moot. Profit matters. CD Baby was (is?) making about $4-5M/year net profit after all expenses, so Disc Makers paid 6x net, which is a very standard amount. I got the next 6 years' profits up-front and they gamble it's going to earn more than that, long-term. Paying $250M would have been like 60 years of profits! Revenue is moot. Profit matters.

CD Baby was (is?) making about $4-5M/year net profit after all expenses, so Disc Makers paid 6x net, which is a very standard amount. I got the next 6 years’ profits up-front and they gamble it’s going to earn more than that, long-term. Paying $250M would have been like 60 years of profits!

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