The Yun Ye / Marchex Paradox

Jeff

Administrator
Staff member
Country flag
In 2005, Yun Ye sold his portfolio of 100,000 names to Marchex for $154 Million.

Today, Marchex's market capitalization is less than $107 Million:
MCHX: Summary for Marchex, Inc. - Yahoo! Finance

Marchex is losing money; Yun Ye was making $19 Million per year in parking revenue.

Funny thing is - if Yun Ye put his money in the bank, he could buy Marchex up and still have tens of millions of dollars left over!

It goes to show - development really only pays if you know what you're doing. And you still need to stay really lean when you're developing. Even with parking revenue down, it's not such a bad business model.
 

wot

Well-Known Member
Country flag
Yun Ye is the epitome of the all knowing domainer cashing out when the timing was perfect and Marchex are the perfect example of the greed syndrome thinking they could improve on what the ultimate expert was doing.

All power to the Yun Ye elbow!
 

Jeff

Administrator
Staff member
Country flag
2005 wasn't the height of the domain market, but in retrospect, it looks like a smart decision to sell. Sometimes it's best to accept a good deal rather than hope for the "best" deal.

Marchex.... man, I feel like I could run their company better than they do...
 

wot

Well-Known Member
Country flag
2005 wasn't the height of the domain market, but in retrospect, it looks like a smart decision to sell. Sometimes it's best to accept a good deal rather than hope for the "best" deal.

Marchex.... man, I feel like I could run their company better than they do...

If you can sell on the up slope not on the down, very difficult to determine a peak in any business, too many external factors.
 

dnk

Active Member
Country flag
It also depends on how much effort the company makes to keep up with the latest trends, on the internet , things are constantly changing. You cannot afford to be complacent.
 

Jeff

Administrator
Staff member
Country flag
That's a big part of the difference. My understanding is that Yun Ye and his wife did pretty much everything when they were running things.

Marchex has a big corporate structure that I think eats up a large amount of the revenue.

The Marchex executives are doing well - not the shareholders...
 

dnk

Active Member
Country flag
Yes, in a big company, time is wasted in office politics and non productive meetings. Overheads are also much higher.
 

whois



Forums dedicated to Indian domain names, including buying, selling, appraising, developing, and monetizing.

About Us

Threads
29,024
Messages
76,567
Members
7,813
Latest member
Kevinuneme
Top Bottom