Catena Media Acquires US Affiliate = 45 Million

[MJM]

Yet another one in this crazy market, bonus (dot com) is an awesome domain.

https://www.gamblingnews.com/news/ca...a-acquisition/

[chaumi]

If anyone new planning on going into this market needs a marker for what they're up against, you would seem to have just had it driven even more firmly home. It's going to need a top effort to compete (and I think there are some that might do it), or an acceptance that aiming for what's possible to compete for is the right way to go.

[MJM]

If anyone new planning on going into this market needs a marker for what they're up against, you would seem to have just had it driven even more firmly home. It's going to need a top effort to compete (and I think there are some that might do it), or an acceptance that aiming for what's possible to compete for is the right way to go.

Very good point, it's about picking up loose change in my opinion - competing head to head with these giants is not possible, although they do use some risky tactics that perhaps leave them vulnerable to getting dinged at some point, but never seems to happen as we all know.

[Triple7]

Very good point, it's about picking up loose change in my opinion - competing head to head with these giants is not possible, although they do use some risky tactics that perhaps leave them vulnerable to getting dinged at some point, but never seems to happen as we all know.

Yep. It's all about know your strength, your weakness and use that to choose your battles.

[chaumi]

Yep. It's all about know your strength, your weakness and use that to choose your battles.

I hope you're right...but this (and a couple of previous markers) has all the hallmarks of a totally different game, where the usual rules may not apply any more. We'll see, maybe I'm overestimating their abilities or misinterpreting intentions. I doubt that's the case.

[Triple7]

I hope you're right...but this (and a couple of previous markers) has all the hallmarks of a totally different game, where the usual rules may not apply any more. We'll see, maybe I'm overestimating their abilities or misinterpreting intentions. I doubt that's the case.

Normally as a one-man-band you'll have no chance in a face-to-face fight with these giants on valuable keywords. That's why it's better to choose your battles. Long tail, a niche, offshore or just another market.

[PROFRBcom]

The combined i15 Media assets generated $8 million in the 12-month period ending July 31, 2021. An estimated 67% of this amount came in during Q1 2021, when North American sports enjoy the most attention from bettors.

So they paid 5.6 years of revenue for 100 more websites to manage... hmmm... ok.

Does the 8million include expenses? Because I imagine 100 websites takes a few full time employees to operate. I would expect at least mid 5 figures per month, so that knocks off 1-2mm right there.

So Catena is paying 8+ years revenue? Funded by cheap debt. And they paid a good bit of it in the form of stock.


I am not impressed with 100 websites only producing 8mm in annual revenue. That is 80k per year, per website... that is nothing lol. I presume that there are 5ish main sites and the rest are PBN bullshit.

[chaumi]

Ah I'd be thinking mid-longer term, bigger fry-ups here (although this level of big money business is way out of my experience and maybe this is too simplistic).

So...

Target is 99.9% of the pie
Buy up your immediate competitors and reduce the playing field/eliminate main competition (but also have an eye open and the cash ready to buy out others)
Bring together all the power of your existing and new properties (which is substantial, combined). Keep/develop the best/strongest/highest potential, keep the others going for a high power private PBN

Now - with the sort of money that's bouncing - you can rank for anything you want if you know what to do/who or what to get to do it
Take the whole top 5 of every obvious money term, with 5 of your own pages on different sites
Move on to the secondary terms, do the same
Take a large percentage of the long tails just as the fallout without even trying too hard
Take a breath, work out what you've not captured, then take those
Manage it all and consolidate

'All' it takes is the money and knowledge of how to bring all the elements together to do it....and if these guys don't know that already it would be a fair surprise. Even lowly I know...and I'd have thought many members do here....which means plenty of others do too.

The only real hope is they can't be bothered with/don't even need the effort of going for 99.9%, and are prepared to stop at 80-85%.

[MMM]

Interesting. That's the same guy that they previously bought PlayNJ network from. Very nice guy as I remember that was active in the past on PAL.
From previous Catena report he already had some not very small % in the company from the previous acquisition.

[wonderpunter]

So they paid 5.6 years of revenue for 100 more websites to manage... hmmm... ok.

Does the 8million include expenses? Because I imagine 100 websites takes a few full time employees to operate. I would expect at least mid 5 figures per month, so that knocks off 1-2mm right there.

So Catena is paying 8+ years revenue? Funded by cheap debt. And they paid a good bit of it in the form of stock.


I am not impressed with 100 websites only producing 8mm in annual revenue. That is 80k per year, per website... that is nothing lol. I presume that there are 5ish main sites and the rest are PBN bullshit.

I guess payment was made based on potential.. its a growing market and it will be based on future monetisation which has been scarce until now.. more and more states are adding in sports betting

[MMM]

They actually should've just bought Kendall, would've saved them few mill

[Former Member 14]

it's about picking up loose change

As I've said for literally years and years, it might seem like 'crumbs' BUT they all add up to getting your loaf of bread

[Triple7]

As I've said for literally years and years, it might seem like 'crumbs' BUT they all add up to getting your loaf of bread

There always was space to earn and there will always be. Those big giants usually buy or follow what's succesfull. They're not very innovative. Their strength is just to use cheap borrowed money to buy assets and use their scale advantage to make deals, get links, etc.

[Sherlock]

If once the cheap money ends, the truth will be revealed. But that is exactly why no real tapering will occur and the big giants with the money from central banks will keep sucking all air from the room and the cheap money will end only through a total distaster caused by disruption of relative prices in economy. There is no way back for long time. It is after all the same as property market, CO2 permits market, sh1tcoin market etc. Money keep pouring in, into something that has infinite P/E ratio and that is just another argument for more money to flow in.

Although the big giants are not innovative, they block the progress and suck the money out of competition. Also they have ability to destroy whole industries, because yes, there is always some space how to make money, but that space can be and is outside of affiliate marketing.

When there is the monopolist concentration on operator and even affiliate side, the regulation is much easier. So when gambling is heavily regulated, ads are regulated, then the sick gamblers who fed "classic" gambling like casino or sports go gambling elsewhere (betting on crypto at exchanges etc.).

[freespinsnodeposit]

I am not impressed with 100 websites only producing 8mm in annual revenue. That is 80k per year, per website... that is nothing lol. I presume that there are 5ish main sites and the rest are PBN bullshit.

I think there are a few other things to consider. First, the value of domains like bonus.com and gamblingonline.com. Also, some of the 100 websites definitely won't be earning yet, for example, it included NYSportsDay.com and New York is yet to go live.

What I find crazy about the deal is that 67% of the $8m came in Q1 2021, when Michigan and Virginia launched, numbers would have started to stabilise surely now. Even Catena's Q1 report showed how high CPAs were due to these states launching, I think they're missing out by going for the CPA-only approach and not having hybrid deals in states that allow it.

[Triple7]

I think there are a few other things to consider. First, the value of domains like bonus.com and gamblingonline.com. Also, some of the 100 websites definitely won't be earning yet, for example, it included NYSportsDay.com and New York is yet to go live.

What I find crazy about the deal is that 67% of the $8m came in Q1 2021, when Michigan and Virginia launched, numbers would have started to stabilise surely now. Even Catena's Q1 report showed how high CPAs were due to these states launching, I think they're missing out by going for the CPA-only approach and not having hybrid deals in states that allow it.

Those super affiliates buy usually all the assets of someone in a market. Many affiliates have one big sites, a few smaller, lots of domains, PBN crap, etc.