Intuit has signed a definitive agreement to purchase Web 1.0 survivor and website provider Homestead Technologies for $170 million.
Menlo Park base Homestead launched in 1998 as a free web site host targeted at small businesses that competed with the then wildly popular Geocities.
Intuit, best known as the creators of the Quicken financial software package said that the acquisition would allow the company to offer web site creation and ecommerce solutions to small businesses. Intuit has a checkered history online, with its business directory site Zipingo closing in August. Intuit currently has a partnership with Google that sees Google services embedded in Intuit products.
The deal is expected to be completed in the first quarter of 2008.
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Congratulations Homestead for getting back into the news.
I wonder what that makes Freewebs worth with over 20 million free and premium customers?
What’s the point?
Now there is a name I haven’t heard for a long time… surprised they got through the whole bubble relatively untarnished. I guess adding a “social” aspect to their site would be a no-brainer… if only they thought about it 8 years ago they could have owned the market!
Jon
Could’ve been done 8 years ago for 1.7 billion (obviously referencing geocities) - a chance missed, but still should still feel delighted, given there’re a couple better homestead alternatives these days.. at least they decided to wait a little longer (and not too much longer)…
Congrats Homestead!
Without using the word synergy, I imagine that Intuit could learn something from Homestead’s technologies and the same could be said of the reverse.
They must have needed a write-off pretty bad.
As a co-founder of Homestead, and on behalf of all the excited folks here, thank you for all the congratulations. We are thrilled at the opportunity to tap into Intuit’s user base (something we’ve been drooling over forever) and, as Phil wrote above, learn something from and teach something to Intuit.
We made it through the first bubble by hunkering down and turning to a subscription model (wow, actually charging money!), and it’s worked out well for us.
Congrats Thai.
Pretty exciting news. Congrats Thai! Thanks for the comment
Congratulations to Justin Kitch CEO
and the Homstead team.
We hope to continue selling quality note cards and
getting good service from our website hosting company.
…and Guy Kawasaki acquires TechCrunch (or TC acquires GK?)
Congrats!!
@8, thanks for proving that subscription model does work.. likewise to classmates.com that reportedly having these millions of paying users paying $3+/month to get get connected with their friends from schools..
early movers do have advantages (of being able to charge real money).
Congrats to homestead, indeed.
@8, Thai
what’s your payout?
and what are you going to do next…
So Web showing signs of consolidation.
http://tekno-world.blogspot.com
Great. Just what I need, another garbage icon loaded on my desktop whenever I reinstall Quicken. Intuit would have done better to spend the money on upgrading their support org to people who understand English well.
I don’t get it. I understand that both cater to the same audience, but I’m not convinced that such an acquisition will benefit Intuit. Will it be used as a product add-on or bonus? Do they expect it to drive additional revenues? Is it some sort of marketing funnel?
I’m surprised the company is even around. The name itself reeks of the old, stagnant Internet era…
Cheers,
Aidan
http://www.MappingTheWeb.com
@18: You mean it’s pronouncable, can be found in the dictionary, is properly capitalised and worst of all, gives you some hint as to what the business does? Shocking. They need to change their name to hoJEEBLEsteBlEuGhH right now.
I like the term “Web 1.0 survivor”. “Thank God we survived the nuclear holocaust! I wouldn’t want to have missed the plague of zombies!”
Homestead is still alive?? It was one of the lamest products in the late 90s, but good for them that they somehow made it (or pulled a rabbit out of their hat).
I think it was a good exit strategy for Homestead and its investors. The deal also benefits Intuit who now has access to Homestead’s small biz customers. My question is what is next for Thai and his team?
Last gasp for life!
http://fakesteveballmer.blogspot.com
Congratulations to Justin Kitch and the Homestead team. This is a long time coming, and they deserve the goodness that comes from sticking to their commitment to loyal subscribers. That subscriber base has value.
Congrats! The homestead team rocks - some of the smartest and nicest people i’ve ever known. Hope they can make great things happen for intuit.