I wrote about Club Penguin a few times in the past (here and here) and it looks like Mike Montgomery at Montgomery and Co was able to find an even better buyer than Sony, DIsney for $350mm in cash and potentially $350mm more in an earnout (see Paidcontent for more). That is pretty impressive for a company that raised money from friends, family, and angels and would not take any venture money despite my best efforts and many other VCs. It is amazing that Lane and team were able to ramp the business up in 24 months to over $60mm in projected revenue and $30mm in projected 2007 profits. That is one capital efficient business and goes to show that many times spending your way to success is not the answer. Anyway, my children seem to be on to some pretty big ideas as they pointed this out to me awhile back. Given that they have been spending more and more time on Webkinz, I wonder what Ganz will do with that property – potential spinout and IPO or rollup strategy or just outright sale?
Published by Ed Sim
founder boldstart ventures, over 20 years experience seeding and leading first rounds in enterprise startups, @boldstartvc, googlization of IT, SaaS 3.0, security, smart data; cherish family time + enjoy lacrosse + hockeyView all posts by Ed Sim →