Trade Me (TME)

[whatsup]

Fairfax considering selling Trade Me as it needs the cash, Fairfax shares have dropped from $7.00 in 2007 to $1.32 and rumour is that F needs to boost its proformance.

[elZorro]

Yes, Whatsup, that's a fast way of getting some capital together. I think we all sat up when Sam Morgan and others did the deal with Fairfax, and thought "Why aren't we that smart?". But there was only room for one big player in the market, and they have it. Turns out Sam and Co set the business up with the idea of selling it off, they had that figured out early on. And Fairfax or someone like them had to buy, they were simply following the money. In this case, advertising revenue, and a cut on national sales. A bit like owning VISA.

Anyway, such a cleverly set up business, doing many small business-people and the public a power of good, I'd buy in anytime.

[fungus pudding]

Yes, Whatsup, that's a fast way of getting some capital together. I think we all sat up when Sam Morgan and others did the deal with Fairfax, and thought "Why aren't we that smart?". But there was only room for one big player in the market, and they have it. Turns out Sam and Co set the business up with the idea of selling it off, they had that figured out early on. And Fairfax or someone like them had to buy, they were simply following the money. In this case, advertising revenue, and a cut on national sales. A bit like owning VISA.

Anyway, such a cleverly set up business, doing many small business-people and the public a power of good, I'd buy in anytime.

Anytime? Not wanna know the deal first? They'll be counting on a lot of interest, so won't be needing to make it too generous.

[macduffy]

Yes, sounds promising but I'd need to look hard at it first, too.

The dot com scene moves so quickly that first mover advantage can't be counted on to last as long as it once did. EBay, Google etc aren't quite as gold-plated as they once were as the "next big thing" arrives.

[Xerof]

Agree with Fungus - are you really dumb enough to say you'd be in when details haven't even been set on the table? One things for sure, they'll milk it for all they can get

Perhaps they'll auction it on Trade Me

[peat]

they could take over NZX

[Mr Tommy]

I think we all sat up when Sam Morgan and others did the deal with Fairfax, and thought "Why aren't we that smart?".

Yep they sold for 750m, and now its worth over double that. No wonder Gareth Morgans kiwisaver is one of the worst performers.

[LeBOJ]

Yep they sold for 750m, and now its worth over double that. No wonder Gareth Morgans kiwisaver is one of the worst performers.

I don't follow your logic. THEY MADE 750M off a much smaller capital investment! The return on capital must be staggering. You are quibbling over the extra increase in value, but how much does a person need? If you are calling them stupid, where is your 750m company? lol.

[The BOWMAN]

Trading halt. Judging from the price movement prior to this. Can't be good news.

[percy]

I would have thought Faifax would be better off selling their newspapers and keeping trade me.