Jun 05 2008
Jumbuck Entertainment to buy Australian auction site Oztion
The Australian reported yesterday that Jumbuck Entertainment, the mobile “community” provider, have acquired Oztion, an Australian auction site, for $1m in cash and $1m in Jumbuck shares—a reasonably modest (by web standards) 2x revenue (no word on earnings, but I hear that it has simply been breaking even). As reported in The Australian, Oztion has one million unique visitors a month and more than 275,000 registered trading accounts and is poised to generate $1.2 million in revenue this financial year (double the previous year). A quick check of the site shows 670k+ items listed (compared to eBay’s 1.5 million).
The distribution, marketing capabilities and funding from Jumbuck, along with the helping hand from the ebay/paypal fiasco, should give Oztion the boost it needs.
Given the follower status, significant gap between it in the leader (0.45 listings RMS and I’m guessing significantly less in revenue RMS and seller RMS), and stiff competition from eBay and Trading Post, I think this is excellent timing and a good exit for the founders.
Congrats to the founders Philip Druce and Kelvin Yip on the exit (and good luck with the 2 year earn out).
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