Once again, the eBay M&A machine continues to churn out potential takeover candidates. YouAre.TV has put itself up for sale on the popular auction site. This isn’t the first time a company has done such a thing, and it definitely won’t be the last.
The company doesn’t go into much detail about the sale on their blog. However, in the auction description, the founders go on to say, “We are only selling b/c we have moved on to new a project, and we don’t quite have the resources to support both anymore.” I’m not a cynic and I hate to jump to conclusions, but it sounds like this project didn’t pan out. If the site is indeed growing like they say, then they should still be hammering away at it.
One big downfall of the site, in my opinion, is its close semblance to YouTube. Both share the term “you” in their names. Both share a similar TV-like logo. Both compete in the ‘video community’ space. I’d wager that many new visitors immediately come to the conclusion that YouAre.TV is simply another YouTube clone. It’s sad, but true.
Kiko was one of the first small start-ups (that I can remember) to put itself up for sale on eBay. It received a huge amount of PR and press, and was eventually sold to Tucows for over $200,000. Not bad. My guess is that YouAre.TV is trying to capitalize on the same type of PR scenario. The difference is that the novelty is gone – it’s been done before. A new way to sell your online business is via Sitepoint Marketplace. This is how TechCrunch bought InviteShare.
What’s most interesting of all is that the company claims to have received a $100,000 offer for the domain itself by a major media firm. The company says they refused that offer. That seems like a ridiculously high offer for a mediocre domain. If indeed the offer were legitimate though, why would the company turn it down?
Currently, the whole package is up for sale on eBay at a starting price of $25,000 and there are NO bids thus far. Perhaps they should have just taken the $100,000 and cut their losses…
Do you think eBay is a legitimate, respectable way to sell a company? Or do you think that such a strategy takes away from the brand value and perception?