Anyone who thinks
overpaid for the rights to
when he bought it Tuesday for $7.5 million is a moron. No, check that, a stupid moron.
Join the discussion on
, go to the
Red Hots Forum, or visit our
, an Internet business incubator. His company bought Business.com from
, a Houston businessman who had paid $150,000 for it three years ago. I know that's a great rate of return. But Winebaum got the best of him.
Yet this morning, in the
Los Angeles Times
, Naseeem Javed, president of
, a company that helps companies select names, says that Winebaum overpaid. "Tomorrow you could have
," he is quoted as saying. "Whoever is buying is playing on very thin ice."
Had I even known this one was for sale, I would have paid $10 million for it. Still would. Winebaum got a great deal because this site has a lot better ring than
, the three names I am playing in the
. (I am actually long VerticalNet and Ariba.) He can go to the capital markets
with that name and a business plan and he will be able to raise several hundred million dollars. What Javed doesn't know, and Ostrofsky may not either, is that B2B is going to stay hot for some time. (And I am not saying that just because
said this morning that the group may have peaked -- although that would be fittingly ironic.)
Winebaum's move was a stroke of genius. I look forward to drafting his company in the supplemental rounds.