Indeed, revenue multiples are dangerous. I’m guessing they bought it at a significant ebitda multiple making the deal sweet for the sellers. However, the private equity MO is going to be value creation through margin improvement. When they flip it their proceeds will be much sweeter. They’ve most likely modeled in multiple contraction as that’s rather common with tech buyouts these days. If the market stays hot they make a killing.
This comment and its parent are the two keys for me in this whole rotten situation. ISOC are like Esau selling his birthright for a mess of pottage (i.e., a bowl of lentils). They could have done so much better for themselves, for the Internet and for society at large by holding on to the domain.
What makes you think that this won't be repeated for other domains? The high level leadership at ISOC/ICANN now have the model for exiting into a lucrative future career as an equity partner. The top officials at ICANN are merely paid in the $300K-$600K annual compensation range, surely an insult for the rulers of the Internet...
