BankRate Acquires Bankaholic For Up To $15 Million

27 Comments

Financial info site BankRate is expanding its financial product listings, as it’s acquiring Bankaholic, which provides info on deposits, savings accounts, and money market accounts. The company will pay $12.4 million up front, with another $2.5 million possible earnout over the next 12 months. Bankaholic’s sole employee John Wu will assist in the transition and remain for an unspecified period of time. BankRate, of course, is exposed to some of the nastier aspects of the economy, though it’s held up fairly well and continued to grow. It’s also made acquisitions in order to diversify its range of financial products — last December it acquired Savingforcollege.com and Nationwide Card Services for at least $29 million. The company has also seen competition from TheStreet (NSDQ: TSCM), which acquired BankingMyWay, a much smaller site with a similar service. A conference call will be held at 4:30 PM ET (details in the Release).

27 Comments

Sarah

For The Love of { GOD }

Kindly Please Would You answer me : How this transaction completed

I mean is this through an agent or lawyer or what ?

How Mr Wu Got his 15 Million into his Bank Account & The Details of

WordPress Blog transfer from Mr Wu to Bankrate ……..

Thank You So Much … { GOD } Bless You & Yours.

GoldEuro73

Kindly Please Would Some One Explain to me How This Deal Done .. ?!!!

I mean how John Wu Completed this deal and got his money is it through an agent or what ??

Lets say a company showed interest in buying PaidContent.Org and offered 100 Million Dollars

How this is done from the start to the end . . . Would Some One Enlighten Me Please ???

GoldEuro73@Gmail.com

Blogging Banks

This is one of the reasons that inspired me to start my own blog. So far I could tell you that while working hard is important, working smart is even more important.
Oh well, back to the drawing board to generate organic traffic.

Oh and the savings, checking, certificated of deposit and the overall banking market is not dead. There are so many bank bonus deals out there, I can't find enough space on my blog to write about them ;-)

Blogging Banks

Ally Bank

Bankrate totally overpaid for this, there's no longer money in the savings accounts/personal financial product industry in this economy.

Devin T. - Harlem 6 - Wu Tang

15 mil is a lot. You can't call these business people over at BankRate retarded for dishing out that money, not without testing their business DNA. Obviously that guy worked hard to get it to where it was.

And as far as winning the lottery analogy, I say, maybe. I am a believer in the butterfly effect, and I think the dude got the right encouragement at the right time and came out with a quality web site (though I would choose different colors for my template) whether or not it be based around a blog.

He may be 22, Mr. Fias, but he is well ahead of his time, and genius is not something that age plays a giant factor in. Sure, with age comes experience, and with experience comes wisdom, but sometimes there are blessed anomalies. Face the facts: either you are on point or you take years to get there. He's probably a gifted and inspired young man, and it's just darn stereotypical for older men to want to ignore ingenious to satisfy their own envious heart and frolic in the ways of stubborn life dissatisfaction.

Pssht.

I'm freaking happy for the guy. Wouldn't you be thrilled to be in his position at 22? I know I would. And why would you get the opportunity at 22? Lottery? At others stupidity? Give it a rest; it was probably a worthwhile investment. Freaking cynical people.

Linda P

Incredible! Well I'm sure he's put in loads of hard work but who would have thought he'd get that much

Robert C - The Wholesale Produ

Brian Writes..

Quote…

"When businesses (in this case, a blog) are bought, they are bought for investment purposes. BankRate will make their investment back and much more over a few years. The banking niche is very lucrative. Most of you have no idea about business and shouldn’t even speculate."

End Quote By Brian..

Amen to that Brain. Banking and finance is very lucrative and I am exploring a venture capital niche. Might even "venture" into credit and finance. It has to be done right however, or it will not be worth doing. Real estate is too. I just wish I could think of a niche that hasn't already been exploited in RE though.

Phil Writes..

Quote..

Hey, I’m still doing research about this, I just can’t believe they would pay such an obscene amount of money for a blog site. The only conclusion I can think of is that bankrate just realized John Wu simply got lucky at the right time.

If bankrate wanted to build the same blog they could. Hell, with 15 mil they could have Warren Buffet write blogs and reach 300K users in 10 days. They definitely have the expertise to do such a thing. So why they paid 15 mil? If bankrate acknowledged

John Wu simply got lucky with his blog they can’t replicate it. You can’t follow someone’s footsteps that won the lottery and buy your lottery tickets at the same gas station in hopes to win. Pure and simple you can’t replicate luck. "

End Phil's Quote..

It's funny Phil, I saw your comments over at WebPronews and they sound exactly the same. Hey wait, they are! For someone who thought that John Wu was just lucky, it seems like your trying to buy your own "lottery ticket" with the Cardz.com website, that you either own, or are promoting as an affiliate!

Just jokes Phil. Don't take me seriously, or get mad at me..

And yes, trying to win the actual lottery you have a one in six million chance (depending on the lottery of course – odds might be higher). But blogging is not a game of chance.

With a good keyword research campaign, the right niche, good content, and an active blog community, you can make money. Maybe not 15 million, but a steady income that might even let you quite your job. It does take a little work however.

Regarding your comment about Mr Wu's luck. I believe, as the saying goes, that luck is when preparedness meets opportunity. And Mr. Wu was certainly diligent with his preparation. The banking and credit card industry was online long before Mr. Wu made the scene. The terms he ranks for are not easy to come by.

If you look deeper into how he ranked so far, so fast, it is all about links and the anchor text that accompanies them. Blog titles are also a key element to rank. If every website, or blog, put that much creativity into getting backlinks and targeting the right keywords, then, most would be successful.

You might not want to follow every aspect of what Mr. Wu has done, or even be in the same niche. But, success leaves clues. Use his success as a model for whatever niche you want to pursue. I will take Mr. Wu's kind of luck anyday!

Rant over..

Robert C – The Wholesale Products Guy

Sister2brother

I say good for him! It's great reading about someone who has managed to be able to make some money during these hard economic times!

It gives a lot of us Internet workers hope!

Brian

No, they couldn't just "build" a blog instead of paying 15 mil, and it hardly matters what his financial experience is – the value is in the bankaholic.com.

When businesses (in this case, a blog) are bought, they are bought for investment purposes. BankRate will make their investment back and much more over a few years. The banking niche is very lucrative. Most of you have no idea about business and shouldn't even speculate.

Phil

Hey, I'm still doing research about this, I just can't believe they would pay such an obscene amount of money for a blog site. The only conclusion I can think of is that bankrate just realized John Wu simply got lucky at the right time. If bankrate wanted to build the same blog they could. Hell, with 15 mil they could have Warren Buffet write blogs and reach 300K users in 10 days. They definitely have the expertise to do such a thing. So why they paid 15 mil? If bankrate acknowledged John Wu simply got lucky with his blog they can't replicate it. You can't follow someone's footsteps that won the lottery and buy your lottery tickets at the same gas station in hopes to win. Pure and simple you can't replicate luck.

Heartlander

Doesn't matter what he knows or his inexperience.
Johns Wu and his $15M will ride off into the sunset and leave the rest of us scratching our heads. That kind of money will buy credibility on its own.
The blow and champaign will flow freely, the hookers at his beckon call, and all is good with the world until he puts the Jaguar over a cliff and leaves a legacy of what might have been.

Ben

"

22 years old…how many intelligent people would believe someone of his age has any idea of how to create and protect wealth or consumer safety? Does he have degree in finance? Is he licensed by any regulatory body ? Who provides his articles and stats? Are his stats verifiable?

In order to be considered an authority, one must rely on experience. How much money has the author earned or lost in his financial lifetime?
"

You are, obviously, completely missing the point. Who do you think is more "intelligent", you or that 15 million guy?

Color Me Unimpressed

Does anyone really believe anyone's going to be buying blogs for $15 million this time next year? Seriously?

Paying $15 million for a banking blog… I'd laugh if it weren't so sad. Enjoy it while you can, it will not last too much longer.

Louie Frias

22 years old…how many intelligent people would believe someone of his age has any idea of how to create and protect wealth or consumer safety? Does he have degree in finance? Is he licensed by any regulatory body ? Who provides his articles and stats? Are his stats verifiable?

In order to be considered an authority, one must rely on experience. How much money has the author earned or lost in his financial lifetime?

Dividend Growth Investor

Scott,

He will be paid $2.5 million when he works for his blog for some time. This goes to show you that the american dream could be achieved on the internet.

I wonder how long has this guy been blogging for..

Scott @ The Passive Dad

Unbelievable! He must have had a ton of sign-ups for credit card and bank account offers. $15 million? Wow! What's to stop him from opening up another website and doing the same thing?

100kjob

Sounds a little bit crazy. Although the economy is in recession, the blog world is just bubbling up.

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