Though this article is shy on the details, it doesn't sound like the business was anywhere near profitable and people may have lost their jobs due to bankruptcy if not acquisition.
According to link above, it follows the acquisition of Insure.com for 16million and PaidContent suggests that this sale may be for more money. So you're right that we don't know but it doesn't sound like a firesale situation, especially since the value is that domain.
The insure.com acquisition is wholly unrelated to the valuation of the Insurance.com business.
Similarly the public or private status of Quinstreet would also play no significant role in the valuation of insurance.com
What is fully unknown is the general cashflow and cash position of Insurance.com before this sale. It might be possible to find some record of their past VC investments, but I don't feel like looking that up.
Insurance.com was likely unprofitable, burning cash, and unable to raise any additional funding on favorable terms. The investors options were likely A) Bankruptcy of the business or B) Sale of business assets and IP to a 3rd party. It looks like they chose B.
If the business was unprofitable in its current state, then it's not surprising that Quinstreet wasn't going to keep a dozen dozen employees continuing to operate in an unprofitable manner.
Your comment and your headline editorial indicate that you're probably not familiar with how a lot of of the cash/sale transactions usually work. A firesale is generally a situation where a business is sold because there is an impending financial disaster, and in startups/venture backed businesses it is often when the sale is done at a 1x (or lesser) of investment value amount. You could have a $1MM or a $100MM sale be deemed a "firesale" depending on the circumstances.
Flagged. The headline is terrible. You have no idea of the details behind this, nor do you have any idea whether it was a good or bad business decision.
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[ 4.5 ms ] story [ 26.3 ms ] threadThough this article is shy on the details, it doesn't sound like the business was anywhere near profitable and people may have lost their jobs due to bankruptcy if not acquisition.
According to link above, it follows the acquisition of Insure.com for 16million and PaidContent suggests that this sale may be for more money. So you're right that we don't know but it doesn't sound like a firesale situation, especially since the value is that domain.
Similarly the public or private status of Quinstreet would also play no significant role in the valuation of insurance.com
What is fully unknown is the general cashflow and cash position of Insurance.com before this sale. It might be possible to find some record of their past VC investments, but I don't feel like looking that up.
Insurance.com was likely unprofitable, burning cash, and unable to raise any additional funding on favorable terms. The investors options were likely A) Bankruptcy of the business or B) Sale of business assets and IP to a 3rd party. It looks like they chose B.
If the business was unprofitable in its current state, then it's not surprising that Quinstreet wasn't going to keep a dozen dozen employees continuing to operate in an unprofitable manner.
Your comment and your headline editorial indicate that you're probably not familiar with how a lot of of the cash/sale transactions usually work. A firesale is generally a situation where a business is sold because there is an impending financial disaster, and in startups/venture backed businesses it is often when the sale is done at a 1x (or lesser) of investment value amount. You could have a $1MM or a $100MM sale be deemed a "firesale" depending on the circumstances.