TechCrunch just reported that Spectrum Equity Investors has just invested $300 million in The Generations Network, the parent company of Ancestry.com. The Generations Network is "almost certainly preparing for an IPO or other larger liquidity event."
Read the complete article here.
Thanks to Tom Kemp of the Genealogy Librarian News blog for bringing this to our attention.
Well, I for one WILL jump to conclusions!
A buyout means that the company doing the “buying out” believes without a doubt that much money will be made, covering the cost of the buyout. (They put a “time limit” on the amount of time it will take to get their “Payback”.
What we can count on seeing is increased fees and possibly slower service.
They will use “marketing” to try to keep their customer base while attracting new customers. IE: 10% off your first month of a years subscription.
The shareholders of Ancestry.com look to make a tidy sum of money from this buyout so they will be more than willing to let this thing go forward!
I am confused about this buyout. Does this mean that Ancestry will exist no more? What about
the years subscription I just paid for? Will it be honored by those taking over? Is the information the same on the new takeover site as on Ancestry? I have not heard one word from Ancestry and wonder as subscribers where we stand? I can’t afford to just throw away the $100+ they charge for being a member.
Help!!!!!!
Marlo
I like ancestry.com very much and use it often. But I’m not jumping to any conclusions yet. Sometimes these buyouts aren’t as awful as they first look, and I’m hoping for the best with this one.
This is really bad news for us that Love Ancestry.com. Looks like we will have to find another site.
The phrase: “almost certainly preparing for an IPO or other larger liquidity event.” sounds ominous.
I’m afrait its not good news to those of us who are customers of MyFamily.com and Ancestry.com.
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Margaret, Nov 2, 2007 has it right!
A buyout is expensive and what follows is tons of money going into advertising and increased fees…very sad but that’s they way it works…folks care more about image and the power of money…don’t worry about subscriptions…they don’t want to lose you!