The dust has not settled on yesterday's sale of Affinity to Hostway. The press release states, "The new company has more than $100 million in revenue and more than 600,000 customers. It combines Hostway's 500 employees, including 150 in Chicago, and Affinity's 250." I am waiting for the sale of Hostway.
In the overall world this is a small transaction. Just this week Sam Zell won his bid to take Tribune Company private in an $8.2 billion buyout. Last week Best Buy ($30 billion revenues) purchased Speakeasy (Revenue $75 million) for $92 million.
Part of any acquisition is efficiencies and cost cuts. Zell is looking at the 20,000 Tribune employees and (although already denied) some accountant somewhere has been sharpening the pencil. Hostway has accountants too.
Let's look at the good side. Hostway will be leaner and meaner, doublespeak for more profits. Hostway is now a private web hosting company carrying 9 digits, $100,000,000 - look at all those lovely digits. Hostway is in a new club.
Yes, someday Hostway will be sold. Who ever thought the Chicago Tribune and Chicago Cubs would be sold? Yesterday Hostway/Affinity shareholders probably obtained an internal 20% valuation increase due to the transaction. Someday a public company will come along and see those 9 growing digits and translate them to a big stock transaction.
Nice job!
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