Cars.com and its underlying business is on the proverbial chopping block, for $3 billion dollars.
You read the figure right: $3 billion dollars, not million. Billion.
And why not; after all, Cars.com reportedly generates between $400 million to $500 million in revenue a year.
Estimates place a new owner’s revenue tapping an additional $200 million annually; that revenue is distributed directly to the owners separate from the dividends they receive, through specific sales agreements, allowing their publications to deliver ad sales on behalf of Cars.com, in many local and hyperlocal markets.
Moelis & Co., which is advising the Classified Ventures publishers consortium on the sale, already has begun discussions with potential bidders, which are expected to include private-equity firms and strategic investors.
More info about this exciting, ongoing deal here.
This post is 100% true!
“…revenue is distributed directly to the owners…” – revenue is not profit, it cannot be distributed to the owners… I know many businesses with billion Dollar revenues and no profit. You cannot measure value of company by revenue, stupid!
Mike – Maybe things are done differently in the Czech republic. Revenue distribution is a common practice it the good ole US of A. Just Google it.