Fairfax Digital Media bought Stayz back in 2005 for $12.7 million. Cassidy claims that if the same multiple at the time of acquisition were applied to current revenues then Stayz would now be worth $36mm. Here are some of the statistics he shared with us about the business:
- 2007 Transaction Value - $107mm (value off bookings generated for owner/listers);
- Grown from 9.000 properties to 23,000 properties; and
- site re-launch generated conversion improvements of 30-40%.
Assuming this is right it is an amazing story behind media group network effects. That internal banners and buttons and not what the network is about. Instead it is the html code driving links and search traffic. Sounds very close to some of the grey/blackish hat activities I have seen online from travel affiliate companies.