GSA Technology Council

North Carolina’s R H Donnelly buys for $350 Million

Cary, North Carolina based R.H. Donnelly (RHD) has reportedly purchased for $350 Million. This deal has been in the works since June, with Dow Jones and News Corp and the New York Times in the running. According to a recent Wall Street Journal story, the property had an EBITDA of around $15 million/year. The final sale price is about 47 times the $7.5 million entrepreneurs spent in 1999 to acquire the property. At that time, it was reported to be the largest amount ever spent for a domain name and analysts (and bloggers) seemed to see no clear path to profitability for the website. Entrepreneurs Jake Winebaum and Sky Dayton started as a business portal, nearly busted in the bubble, then rebuilt as a directory and vertical search business. The company raised $10 million in 2004 and has been on the block since June.

R. H. Donnelly has a scheduled call to announce Q2 earnings this morning, so this deal is expected to be announced there.