Comments on: Communicate Acquires Y Combinator Startup Auctomatic, Unveils New Business Strategy http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/ Startup and Tech News Tue, 13 May 2008 06:12:26 +0000 http://wordpress.org/?v=2.3.3 By: The F|R Interview: Y Combinator’s Paul Graham - GigaOM http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2254721 The F|R Interview: Y Combinator’s Paul Graham - GigaOM Sat, 03 May 2008 09:00:22 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2254721 [...] Many other “YC shops” have quickly achieved liquidity events, among them Reddit (Condé Nast), Auctomatic (Live Current Media), and most recently, Xobni (Microsoft). Fresh from Y Combinator’s fourth [...] […] Many other “YC shops” have quickly achieved liquidity events, among them Reddit (Condé Nast), Auctomatic (Live Current Media), and most recently, Xobni (Microsoft). Fresh from Y Combinator’s fourth […]

]]> By: DestinationHub TM | INDEX // mb http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2192974 DestinationHub TM | INDEX // mb Fri, 18 Apr 2008 23:35:30 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2192974 [...] have been getting a lot of attention this week after they purchased rights to broadcast cricket. Arrington original wondered if he would remember them at all. A lesson in go big or go home. I thought is was interesting that [...] […] have been getting a lot of attention this week after they purchased rights to broadcast cricket. Arrington original wondered if he would remember them at all. A lesson in go big or go home. I thought is was interesting that […]

]]> By: Live Current Media Signs a $50 Million Deal For Exclusive Online Rights To Indian Cricket http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2186953 Live Current Media Signs a $50 Million Deal For Exclusive Online Rights To Indian Cricket Thu, 17 Apr 2008 16:48:43 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2186953 [...] will be seeded with content from this deal. Kulveer Taggar, the former CEO of Auctomatic (which was recently purchased by Current Live Media) and one of the internal champions of the deal tells me: The Cricket.com vision is to create a site [...] […] will be seeded with content from this deal. Kulveer Taggar, the former CEO of Auctomatic (which was recently purchased by Current Live Media) and one of the internal champions of the deal tells me: The Cricket.com vision is to create a site […]

]]> By: The European Ecosystem is Entering Puberty « Freed from The Matrix http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2164229 The European Ecosystem is Entering Puberty « Freed from The Matrix Sat, 12 Apr 2008 10:39:31 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2164229 [...] Collison, subsequently raising investment from Chris Sacca and Paul Buchheit, his company was acquired by Live Current Media for $5M last [...] […] Collison, subsequently raising investment from Chris Sacca and Paul Buchheit, his company was acquired by Live Current Media for $5M last […]

]]> By: P.T. Barnum http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2057224 P.T. Barnum Thu, 27 Mar 2008 20:48:29 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2057224 Due dilligence means nothing outside of perhaps Google. The company will outsource the process to team of bored, washed up former engineers ask you some questions. Maybe if they are serious buttholes they look at the code - but not usually. They may or may not investigate the team, it really depends on how bored they are. If the company is even dumber, they will try to do it themselves. The only places the due dilligence process is serious these days are google and microsoft. However, the important lesson to learn is that if you have a lame website, the key is to find the richest, yet most unlikely and least competent buyer. Due dilligence means nothing outside of perhaps Google. The company will outsource the process to team of bored, washed up former engineers ask you some questions. Maybe if they are serious buttholes they look at the code - but not usually. They may or may not investigate the team, it really depends on how bored they are. If the company is even dumber, they will try to do it themselves. The only places the due dilligence process is serious these days are google and microsoft.

However, the important lesson to learn is that if you have a lame website, the key is to find the richest, yet most unlikely and least competent buyer.

]]> By: WillKnott.ie » Blog Archive » Teenage kicks and Auctomatic hits http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2056446 WillKnott.ie » Blog Archive » Teenage kicks and Auctomatic hits Thu, 27 Mar 2008 16:09:37 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2056446 [...] Communicate Acquires Y Combinator Startup Auctomatic, Unveils New Business Strategy [via Zemanta] [...] […] Communicate Acquires Y Combinator Startup Auctomatic, Unveils New Business Strategy [via Zemanta] […]

]]> By: Kulveer http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2056072 Kulveer Thu, 27 Mar 2008 14:00:26 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2056072 @Rezadior Hmm...not quite, that was actually more in context of our other negotiations. Also, it was more a general "if you're not willing to walk away from a deal, you'll never get a good one" sentiment. This is actually a really hard lesson to learn. For example, for even investors who are essentially on your side, the default is to give them all the concessions they ask for. It takes a small amount of guts to turn around and say no, and risk losing everything. Finally - our tech and team has been through successful due diligence with three companies, so, it's not quite an empty website. All the metrics were laid bare, so no surprises, unfortunately. @MikeT we raised in total $600k. ...did I take the bait? Sigh. @Rezadior

Hmm…not quite, that was actually more in context of our other negotiations.

Also, it was more a general “if you’re not willing to walk away from a deal, you’ll never get a good one” sentiment. This is actually a really hard lesson to learn. For example, for even investors who are essentially on your side, the default is to give them all the concessions they ask for. It takes a small amount of guts to turn around and say no, and risk losing everything.

Finally - our tech and team has been through successful due diligence with three companies, so, it’s not quite an empty website. All the metrics were laid bare, so no surprises, unfortunately.

@MikeT we raised in total $600k.

…did I take the bait? Sigh.

]]> By: Rezadior http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2055381 Rezadior Thu, 27 Mar 2008 09:29:06 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2055381 Errrm- http://news.bbc.co.uk/2/hi/business/7315598.stm "We could immediately see that to negotiate well you have to be able to bluff successfully." So they bluffed (ie exaggerated or plain lied) about their empty website to clinch this deal? Heh, LiveCurrent are in for such a shock... Errrm-

http://news.bbc.co.uk/2/hi/business/7315598.stm

“We could immediately see that to negotiate well you have to be able to bluff successfully.”

So they bluffed (ie exaggerated or plain lied) about their empty website to clinch this deal?

Heh, LiveCurrent are in for such a shock…

]]> By: Idiot CEO http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2055044 Idiot CEO Thu, 27 Mar 2008 07:01:19 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2055044 It says they took $400k. I think the $15k must have been the Y Crapinator money. http://www.crunchbase.com/company/auctomatic In any case this is a dream situation for a company that was otherwise looking at the deadpool but instead won the lottery. I guess there is a lesson in there somewhere. It says they took $400k. I think the $15k must have been the Y Crapinator money.

http://www.crunchbase.com/company/auctomatic

In any case this is a dream situation for a company that was otherwise looking at the deadpool but instead won the lottery. I guess there is a lesson in there somewhere.

]]> By: MikeT http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2054611 MikeT Thu, 27 Mar 2008 03:00:50 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2054611 @ Idiot CEO: my congrats go to whoever built something, however bad it is, and got a nice exit. It does not matter that the product is crap, it does not matter that it looks like crap, and that whoever put it together spent maybe a month or two on building it. The fact is, they got 15k in funding, some free advice, and then sold it for 5M. Now that's a cool return, and what generated it is not that important. The numbers speak for themselves and the guys deserve kudos for that. @ Idiot CEO: my congrats go to whoever built something, however bad it is, and got a nice exit. It does not matter that the product is crap, it does not matter that it looks like crap, and that whoever put it together spent maybe a month or two on building it. The fact is, they got 15k in funding, some free advice, and then sold it for 5M. Now that’s a cool return, and what generated it is not that important.
The numbers speak for themselves and the guys deserve kudos for that.

]]> By: Idiot CEO http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2054527 Idiot CEO Thu, 27 Mar 2008 02:01:48 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2054527 Man if I had a $5 million dollar exit for every failed website I've created I'd be rich. These guys couldn't even get eBay sellers to use their site for free. Why on earth would someone buy that crap. If I owned stock in that company I'd sell every share and short it. Reading over the Auctomatic founders blogs and twitters they spent more time on vacation than they did working on that piece of dump. They must have been out shopping it around as soon as they knew it was going to be a failure. Which had to have been almost from the day they founded it. I've heard that BC bud was strong stuff but apparently it's REALLY REALLY strong stuff. Lol. Please provide more info and details on who put this deal together because I seriously want to hire them. If they can get $5 million for garbage they can probably make me a couple hundred million for the multimillion dollar profits my company pulls in a year. And the founders aren't even smart. Seriously, who gets into the eBay 3rd party space. There is no money to be made there. My guess is when the dumbomatic founders figured that out they spent every second of their waking hours trying to figure out who they could unload this thing to. I have to ask all the people who are congratulating these guys what they are thinking. I guess most of the people that read Tech Crunch must have a pretty low IQ. I'd like to give props to those smart enough to call this deal what it is, which is crap. And what is this shopping engine they bought? They bought a 3rd party listing tool for eBay. There are probably like 200 of those. Lol. Garbage. Not only that they bought a complete failure of a 3rd party eBay lister tool. God I love Tech Crunch. When I read this stuff it gives me hope I can find some jackass to pay me off with a monster payday. Man if I had a $5 million dollar exit for every failed website I’ve created I’d be rich. These guys couldn’t even get eBay sellers to use their site for free. Why on earth would someone buy that crap. If I owned stock in that company I’d sell every share and short it.

Reading over the Auctomatic founders blogs and twitters they spent more time on vacation than they did working on that piece of dump. They must have been out shopping it around as soon as they knew it was going to be a failure. Which had to have been almost from the day they founded it.

I’ve heard that BC bud was strong stuff but apparently it’s REALLY REALLY strong stuff. Lol.

Please provide more info and details on who put this deal together because I seriously want to hire them. If they can get $5 million for garbage they can probably make me a couple hundred million for the multimillion dollar profits my company pulls in a year.

And the founders aren’t even smart. Seriously, who gets into the eBay 3rd party space. There is no money to be made there. My guess is when the dumbomatic founders figured that out they spent every second of their waking hours trying to figure out who they could unload this thing to.

I have to ask all the people who are congratulating these guys what they are thinking. I guess most of the people that read Tech Crunch must have a pretty low IQ. I’d like to give props to those smart enough to call this deal what it is, which is crap.

And what is this shopping engine they bought? They bought a 3rd party listing tool for eBay. There are probably like 200 of those. Lol. Garbage. Not only that they bought a complete failure of a 3rd party eBay lister tool.

God I love Tech Crunch. When I read this stuff it gives me hope I can find some jackass to pay me off with a monster payday.

]]> By: secret weapon http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053991 secret weapon Wed, 26 Mar 2008 21:14:04 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053991 genius hucksterism on the part of the auctomatic guys - sell garbage to idiots with too much money. bravo! at least they have to go to vancouver... two fewer douchebags in bay area. genius hucksterism on the part of the auctomatic guys - sell garbage to idiots with too much money. bravo! at least they have to go to vancouver… two fewer douchebags in bay area.

]]> By: mark http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053896 mark Wed, 26 Mar 2008 20:34:34 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053896 This is a company I've followed for years, because I follow the domain business closely, as boring as it may be to some (due to my own domain portfolio). While it may be true there are many OTC/pinksheet companies out of vancouver that exist to only print and sell shares of stock to earn revenue via dilution, Communicate.com has not been one of them. If you are willing to invest a couple of minutes in some research they are a reporting company, and file financials (unlike many bulletin board companies) here is a recent filing which shows their financials up through 3rdQ last year. http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5553987 This is a company I’ve followed for years, because I follow the domain business closely, as boring as it may be to some (due to my own domain portfolio). While it may be true there are many OTC/pinksheet companies out of vancouver that exist to only print and sell shares of stock to earn revenue via dilution, Communicate.com has not been one of them.

If you are willing to invest a couple of minutes in some research they are a reporting company, and file financials (unlike many bulletin board companies)

here is a recent filing which shows their financials up through 3rdQ last year.
http://www.pinksheets.com/edga.....ID=5553987

]]> By: Rich Miller http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053627 Rich Miller Wed, 26 Mar 2008 18:49:25 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053627 Yes, $5 million seems like an awful lot of money for this site/app. But Communicate has bought not just the one eBay businesss, but the shopping engine technology as well. It's not rocket science, but it may speed their ability to monetize domains. Domain-based businesses typically want to monetize sites at scale. My guess is they use Auctomatic's framework to create hundreds of niche vertical shopping portals. Some could focus on eBay categories (quick and dirty, little code to change) and others might harness feeds from affiliate portals like Commission Junction or ShareASale. Yes, $5 million seems like an awful lot of money for this site/app. But Communicate has bought not just the one eBay businesss, but the shopping engine technology as well. It’s not rocket science, but it may speed their ability to monetize domains. Domain-based businesses typically want to monetize sites at scale. My guess is they use Auctomatic’s framework to create hundreds of niche vertical shopping portals. Some could focus on eBay categories (quick and dirty, little code to change) and others might harness feeds from affiliate portals like Commission Junction or ShareASale.

]]> By: Trevor Plantagenet http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053560 Trevor Plantagenet Wed, 26 Mar 2008 18:28:40 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053560 Most people in the valley aren't aware of the true nature of "public" Vancouver companies. At best, going public in Vancouver is like VC-financing in the US, but typically is more about pump-and-dump schemes. If this deal was a stock-swap, which is the typical nature of these deals where one of these Vancouver companies does an acquisition, then Y-Combinator and the Auctomatic team will have to be extremely vigilant to see if they're able to actually turn any of those shares into real money. Most people in the valley aren’t aware of the true nature of “public” Vancouver companies. At best, going public in Vancouver is like VC-financing in the US, but typically is more about pump-and-dump schemes. If this deal was a stock-swap, which is the typical nature of these deals where one of these Vancouver companies does an acquisition, then Y-Combinator and the Auctomatic team will have to be extremely vigilant to see if they’re able to actually turn any of those shares into real money.

]]> By: Sean http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053551 Sean Wed, 26 Mar 2008 18:25:14 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053551 Mike, They also own Body.com, Cologne.com and Karate.com Let me know if you need an entire list of all of their domains. -Sean Mike,

They also own Body.com, Cologne.com and Karate.com

Let me know if you need an entire list of all of their domains.

-Sean

]]> By: mark http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053375 mark Wed, 26 Mar 2008 17:32:11 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053375 I guess excitement is in the eye of the beholder all depends on what you do with the cash I guess excitement is in the eye of the beholder
all depends on what you do with the cash

]]> By: jro http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053258 jro Wed, 26 Mar 2008 16:58:13 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053258 "The domain business is a cash cow but isn’t exactly exciting stuff." I've found I'm rarely bored collecting cash. “The domain business is a cash cow but isn’t exactly exciting stuff.”

I’ve found I’m rarely bored collecting cash.

]]> By: Workpost http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053154 Workpost Wed, 26 Mar 2008 16:25:00 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053154 "Harjeet Taggar... Thinker of Stuff" lol. That's the best job in the world right there. Thinker of stuff. “Harjeet Taggar… Thinker of Stuff” lol. That’s the best job in the world right there. Thinker of stuff.

]]> By: Job Board News http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053117 Job Board News Wed, 26 Mar 2008 16:14:20 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053117 doesn't auctomatic seem like a strange tangent for communicate? what's the link to domain development? domains are as important as they are boring (to some)... doesn’t auctomatic seem like a strange tangent for communicate? what’s the link to domain development?

domains are as important as they are boring (to some)…

]]> By: xavierv http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053042 xavierv Wed, 26 Mar 2008 15:56:51 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053042 I'm not quite sure why Auctomatic didn't stay independent longer to add more value to their startup, but this is great news. Congratulations to them. <a href="http://hyveup.blogspot.com/2008/03/auctomatic-acquired-by-live-current.html" rel="nofollow">Video </a> I’m not quite sure why Auctomatic didn’t stay independent longer to add more value to their startup, but this is great news. Congratulations to them. Video

]]> By: SmartFolders http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053040 SmartFolders Wed, 26 Mar 2008 15:55:40 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053040 I think there is some internal backscratching going on. You buy my company for $5mil I'll buy X.com of yours $5mil. It's a wash for both of us, but the public shareholder is out the silly valuation of the website. I think there is some internal backscratching going on. You buy my company for $5mil I’ll buy X.com of yours $5mil. It’s a wash for both of us, but the public shareholder is out the silly valuation of the website.

]]> By: Harj http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053004 Harj Wed, 26 Mar 2008 15:47:06 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2053004 Thanks for the congrats everyone, much appreciated. Thanks for the congrats everyone, much appreciated.

]]> By: Sam Purtill http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2052982 Sam Purtill Wed, 26 Mar 2008 15:40:07 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2052982 Congrats kul, harj, patrick -- that was fast :) Congrats kul, harj, patrick — that was fast :)

]]> By: LOL http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2052845 LOL Wed, 26 Mar 2008 15:01:41 +0000 http://www.techcrunch.com/2008/03/26/communicate-acquires-y-combinator-startup-auctomatic-unveils-new-business-strategy/#comment-2052845 Hilarious. As I just saw on another site, "Was someone at Communicate.com smoking crack?" Guys I'm talking to in Palo and SF finding this so funny that someone actually took the bait. The founders of Auctomatic, Harj and Kulveer Taggar, are in the same Oxbridge clique as the YouNoodle guys, entering the Valley with some godawful website, using self-congratulatory self-written articles leveraging their PR contacts and guys they sucked up to to overhype and overspin their creations out of control. Resultantly, someone was going to inevitably fall for the hype and bite. $5m for www.Auctomatic.com? Look at the website. No chance whatsoever they'll recover anywhere near $5m in profit over a 10yr horizon, which should be any tech acquirer's key metric. Feel sorry for the dopes at Communicate who fell for the hype, and are now sitting on an unprofitable one trick pony. Fortunately me and my investment friends in Palo/SF take more than a "We went to Oxbridge therefore lick my boots" approach to valuing non-profit websites! Ha Hilarious. As I just saw on another site, “Was someone at Communicate.com smoking crack?” Guys I’m talking to in Palo and SF finding this so funny that someone actually took the bait.

The founders of Auctomatic, Harj and Kulveer Taggar, are in the same Oxbridge clique as the YouNoodle guys, entering the Valley with some godawful website, using self-congratulatory self-written articles leveraging their PR contacts and guys they sucked up to to overhype and overspin their creations out of control.

Resultantly, someone was going to inevitably fall for the hype and bite.

$5m for http://www.Auctomatic.com? Look at the website. No chance whatsoever they’ll recover anywhere near $5m in profit over a 10yr horizon, which should be any tech acquirer’s key metric.

Feel sorry for the dopes at Communicate who fell for the hype, and are now sitting on an unprofitable one trick pony. Fortunately me and my investment friends in Palo/SF take more than a “We went to Oxbridge therefore lick my boots” approach to valuing non-profit websites!

Ha

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