Internet Brands to be LBO'ed for $1.1 billion

Discussion in 'General Discussion | Travel' started by MX, Jun 8, 2014.  |  Print Topic

  1. MX

    MX Gold Member

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    Internet Brands is of interest to our community because it owns the Frugal Travel Guy & Flyertalk in its portfolio of businesses.
    further details here.

     
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  2. iolaire
    Original Member

    iolaire Gold Member

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    this reads like the sites that we care about are low priority, maybe we will see a spinoff in the future with previous site owners picking up the pieces for pennies on the dollar
     
  3. Jaimito Cartero
    Original Member

    Jaimito Cartero Silver Member

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    Unless it's losing money, why would they sell it? Should be a nice cash cow.
     
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  4. Wandering Aramean
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    Wandering Aramean Gold Member

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    Last time I had a conversation with someone about it (admittedly a couple years ago) the travel segment - including FT - was under-performing the other markets IB operates in. And the traffic numbers are not trending particularly positively.
     
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  5. LarryInNYC

    LarryInNYC Gold Member

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    Private equity is not like regular investing. Unless the investment increases in value by a certain (not small) percent, KKR will not collect their "carried interest" on it. If they can identify under performing divisions of a company they may well sell them to allow the rest of the investment to grow fast enough to meet their needs.
     
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  6. anileze

    anileze Gold Member

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    Forums typically are of little interest to companies who buy multi-dimensional assets. Let us see what happens to thorntree side of LP :)
     
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  7. NYBanker
    Original Member

    NYBanker Gold Member

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    This is what is called a "sponsor to sponsor" transaction. H&F (another well regarded PE firm) has owned IB for a few years already.

    We will learn more about the profitability of their four segments (including "home and travel") when the debt deal comes out.
     
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