[ForrestN]

Wow! From DHH in the comments, it appears it did sell for the full asking price. Very curious to know more about the new owners. Buying a business outright and then running it isn't a scenario that gets covered very often on the startup behind-the-scenes circuit.

Here's hoping we get some follow-up posts about how it goes for the new owners on SVN.

[dhh]

Yes, despite the HN peanut gallery's perception of the world, there is actually a market for profitable businesses. It's surely less exciting than selling your no-revenue photo service for a billion dollars, but that's ok.

We'll be sure to follow the life of Sortfolio after the sale.

[citricsquid]

uh, you are aware the majority of negativity and questioning about the asking price was because you did not at any point answer whether or not billing information (and subscriptions) would be kept, even when people on the Flippa auction requested this information?

If you'd said from the start this was the case you'd have got many more bids, on HN alone I saw many comments from people stating they would bid if this was the case.

Maybe I missed something big or I'm not aware of something, but this was what the negativity was about, not the fact that the site is worthless and can't sell.

[jasonfried]

Anyone who was a qualified buyer, and asked privately, got the answer. Lots of people asked privately. We even put serious buyers in touch with our credit card processing company so they could get additional questions answered directly.

[citricsquid]

The comment implied that the average HN user doesn't have the capacity to understand how business works, but the information the buyers had is not what the public had, that's a bit... disingenuous.

[tptacek]

The average HN user certainly doesn't have that capacity. Come on.

[ThomPete]

Now that's disingenuous. :) I am pretty sure you know what was meant.

[larrys]

"Anyone who was a qualified buyer"

What criteria did you use to determine a "qualified" buyer?

As someone who frequently deals in transactions over the web for large dollar amounts it is not always clear who is qualified and who isn't. Especially if you aren't doing a high volume of transactions so you don't have a pattern established. One recent transaction we handled for someone started off with an insulting offer of $1000 (from a gmail type account in China (qq.com) and ended up at $38,000 USD)

[jasonfried]

When you get dozens and dozens and dozens of inquiries, it's pretty easy to tell which ones are serious. People who are prepared to spend $480,000 make it very clear they they're interested in moving forward and not just browsing.

[meanguy]

I see you've never listed a million dollar house for sale. :)

[larrys]

I'd love a post on how the price was set at 480k and why specifically you weren't willing to sell for anything less than that figure. Why you drew that line in the sand. Must have been more going on here than meets the eye.

If I had to guess I'd would say that the people who bought the site had offered 480k but you didn't want to say that you had a solid offer for a certain amount. Speculating that you told them you would sell to them at that price if a better offer didn't come in. This seems to dovetail with the somewhat cavalier attitude of previous posts and 37signals principals HN comments.

"despite the HN peanut gallery's perception of the world, there is actually a market for profitable businesses."

I've bought and sold several businesses both as the business owner and as a go between (collecting a commission for the sale of a business).

[dhh]

Yeah, you got us figured out. We had an offer, sat on it, invented this story to see if we could get more, and played the world for a fool. BUT YOU BUSTED US. OH NOOOOES!

Or, of course, the simpler explanation: We thought the site was worth at least 2x the previous year's take. And if we didn't get that, it wasn't worth our time to deal with the transaction.

[larrys]

I have no idea what I said to get a response like that.

There is nothing wrong with what I proposed as a reason and it certainly doesn't rise to the level of "played the world for a fool." in any way.

"We thought the site was worth at least 2x the previous year's take. And if we didn't get that, it wasn't worth our time to deal with the transaction."

"it wasn't worth our time to deal with the transaction."

Your attitude is a total outlier. Enjoy your arrogance. You've got plenty of years to go to see how that works going forward.

[dhh]

You have no idea? You launched wild accusations that we were just playing everyone with our proposal and that we actually just had a buyer all along. If we had a buyer at $480K, we would not have bothered listing it again. We would just have sold it.

I think the only reason why you consider my attitude an outlier is because I state it. Every business have a cut off point where a potential return is not worth the hassle. $480K was that number for us. I'll guarantee you that it's much, much higher for most other businesses.

Do you think Apple is going to fiddle through $200K purchase negotiations if they want to diverse themselves of a product? Of course not. Just not worth their time.

I'm happy how things have worked out for me so far, but thanks for caring.

[larrys]

"wild accusations that we were just playing everyone"

You are 100% incorrect as to what I actually did and why. In business what I had suggested as a possibility is not something that would be frowned upon at all. It's the way business is done quite frequently. Do you think games aren't played in business and especially in negotiation? Consequently I wasn't being critical at all according to the way I viewed what you did. I looked at it in a positive way.

I've been negotiating for about 37 years and think about it every day and even as a hobby study the actions of a wide variety of individuals and companies. I don't claim to know what you know about programming or rise to your level of proficiency since it's what you do and I would never challenge you on that. But I do know about negotiating and business.

The "speculation" that I had was based on my experience. I even called it "speculation" and started my statement by saying "I'd love a post on how the price was set". That hardly sounds like it is coming from someone making "wild accusations".

As an aside I don't think that it supports your point to compare your situation to Apple and use the number 200k. Obviously.

[mnicole]

Don't take it too harshly, the site is the equivalent of the web design listings on CraigsList without the extra clicks.

[taylort]

And DHH is not exactly known for his tact.

[ascendant]

He's a multi-millionaire and was able to do it while acting this way. Therefore his previous experience is that acting like that will continue making him exceedingly wealthy. Getting angry about it won't do any good, you might as well just ignore him. I'm trying to say this in the most neutral, scientific way possible.

[ascendant]

Also note, he has a pretty well established disdain for the entire VC-funded startup model, and Hacker News in general. If you expect him to be polite here, I think you have some misplaced expectations. Not that I'm excusing it, just not losing any sleep over it.

[blake8086]

That is very interesting!

What research went into discovering that there is a market for profitable businesses?

This really shatters the idea that the point of business is not to make money.

[ForrestN]

Excellent, thanks. We hear so much the genesis of businesses but this phase of a business' life is fascinating too. Congratulations.

[j_s]

Perhaps not quite the same scale, but do check out the story of Rob Walling's acquisition of HitTail, still being discussed regularly on their podcast:

The Inside Story of a Small Startup Acquisition - https://news.ycombinator.com/item?id=3511437

http://www.startupsfortherestofus.com/episodes/episode-83-hi...