Getting some serious pushback on the piece I penned yesterday praising Jake Winebaum for paying $7 million for Business.com.
Join the discussion on
. My favorite blast, labeled "Uh oh, I guess I am a Stupid Moron" -- you know you have to read that mail -- says: "While Winebaum might make money on the deal, long term it will look extravagant and will be labeled 'one of the clues that we were in a bubble,' at least in my moronic opinion."
So far, so good. Here is where the analysis is faulty: "Would
be stronger if it were
? I just saw an ad for
. Will that name help it be successful?"
The issue isn't success in the world of commerce. The heck with the world of commerce. That don't mean, excuse me, jack.
Heck, Amazon is a huge failure in the world of commerce. It loses money on everything it sells. (Oh, OK, it does fine on some books.) I don't know any serious businessman who believes Amazon will make it.
Sorry for the Raskolnikov-like cynicism, but it is the stock market, stupid, not the retail market. You match up ex-
wunderkind Winebaum with the right URL, and voila, you have a $3 billion IPO. Then Winebaum can do whatever he wants. He can go buy every URL he needs. He can put out of business anybody he wants.
But without that URL, he is just winebaum.com, which is, well, not that catchy.
Never underestimate the power of the Wall Street promotion team. This company of Winebaum's goes from obscure to can't-miss with the purchase of this URL. If Joe Blow had bought it, no way -- but Winebaum ain't Joe Blow. He's proven with a now-bankable URL. Armed with Business.com, Winebaum takes the name B2B away from
and can call it his own.
That's how this one plays out.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at