{"id":2526,"date":"2008-01-21T21:22:01","date_gmt":"2008-01-22T04:22:01","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2526"},"modified":"2008-01-21T21:33:07","modified_gmt":"2008-01-22T04:33:07","slug":"activeraincom-and-housevaluescom-the-ultimate-irony","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2526\/activeraincom-and-housevaluescom-the-ultimate-irony\/","title":{"rendered":"Activerain.com and HouseValues.com- The Ultimate Irony"},"content":{"rendered":"

Activerain.com received a capital infusion to the tune of $2.75 million from Housevalues.com. It was announced on Inman News<\/a>, posted here, on BHB<\/a>, and explained on Activerain<\/a>.<\/p>\n

Housevalues has suffered an erosion of market value<\/a> since its post-IPO “pop” in early 2005. It added 50% from its IPO price and held steady through out 2005. As the real estate market declined, so did the value of Housevalues.com; it’s stock price plummeted below $10, in May, 2006 and has steadily declined to its current sub $3\/share.<\/p>\n

While many members of Activerain.com are showing a stiff upper lip, they are exhibiting cautious optimism. Most REALTORs have had less than stellar results with the Housevalues.com advertising\/lead generation platform and are wary of the portal’s high-pressured telemarketing operation.<\/p>\n

What does Housevalues.com get for its $3 million? <\/strong> Activerain.com has 66,000 members, probably 10-15% of them active. While the press release from Jon Washburn states that the member’s content is not released to Housvalues.com, one would think that the investor has a first right of purchase for the remaining stock. If the rumor of the equity ownership is correct (35%), Housevalues could purchase the Company for about $9-10 million, members’ information and all.<\/p>\n

What Move.com said was worth $33 million<\/a>, Housevalues.com is buying at a substantial discount. Activerain has a “great franchise”, just like Countrywide does. What Bank of America saw in Countrywide, House Values sees in Active Rain.<\/p>\n

I just think the irony of the lead generation company paying for leads is worthy of a chuckle. Hat tip to Jon and Matt for making the sharks pay for the meal.<\/p>\n

Our story so far:<\/em><\/strong> Trying to keep up with developments in the ActiveRain saga? These are all the BloodhoundBlog posts to date:<\/p>\n