How to make a profit

[petewood]

I have heard that the dotcom company lastminute.com is being sold to an American company. The two founders of the business, Brent Hoberman and Martha Lane-Fox will make about £40m between them from the sale. So far so good. The thing I can't understand though, is that the company has never made a profit. How the hell does this work then?



I am thinking of setting up an internet company which will lose as much money as possible so I can then make a few quid selling it to the Americans. Any suggestions as to what I could sell would be welcome. I have designed a nice line in chocolate fireguards for starters.

 

[Richardp]

I have heard that the dotcom company lastminute.com is being sold to an American company. The two founders of the business, Brent Hoberman and Martha Lane-Fox will make about £40m between them from the sale. So far so good. The thing I can't understand though, is that the company has never made a profit. How the hell does this work then?



I am thinking of setting up an internet company which will lose as much money as possible so I can then make a few quid selling it to the Americans. Any suggestions as to what I could sell would be welcome. I have designed a nice line in chocolate fireguards for starters.

praps we could sell them the channel tunnel or that stupid Dome thingy in london, trouble is they'd probarbly make a profit and sue us.

 

[AdamW]

Ah, but what they were really buying was the name and the market share. Lastminute is a famous name, many people know it (and use it). However, if you start a new company called "Bookedit-packedit-f**kedoff" then you will spend a lot of money just getting people to associate your name with that industry.

It's like ebay. Even if they made no money now, they could sell for millions to another company that reckons they have a profitable business model for it.

 

[Richardp]

Ah, but what they were really buying was the name and the market share. Lastminute is a famous name, many people know it (and use it). However, if you start a new company called "Bookedit-packedit-f**kedoff" then you will spend a lot of money just getting people to associate your name with that industry.

It's like ebay. Even if they made no money now, they could sell for millions to another company that reckons they have a profitable business model for it.

Ummm! tricky plighters

 

[pipme]

Guess one needs to think up all the jazzy, hip, cool website names and register them .... Now that could be lucky !!