ancestry.com being acquired

[sjadelson]

European company Permira Funds is buying ancestry. We'll see what this changes.... Details here.

[gtc]

Well, PE firms tend to want to see a fast ROI ... or it's an asset strip/fire sale to get out, especially in market downturns.

Let's see how this one pans out.

[Julie Ann]

Well, PE firms tend to want to see a fast ROI ... or it's an asset strip/fire sale to get out, especially in market downturns.

Let's see how this one pans out.

Even if it is a good twin PE firm, there is always a learning curve, and they did not pay $$1.6 B for Anc. because they like surnames and the 1940 census. I am assuming they hope those little fluttering hint leaves turn to gold for them, one way another, good or bad twin scenario.

The questions are what will happen to subscription rates, and our data, and confidentiality issues.

Time to clean up the trees, read the hints and download to a Gedcom file, been meaning to do it any way.

[darroll]

I hope they will fix the bad information in the trees.

[andbro]

Ha ha hahah That will never happen.

[Julie Ann]

Ancestry.com Sale Investigated by Securities Attorneys

Ancestry.com Sale Investigated by Securities Attorneys at The Briscoe Law Firm and Powers Taylor, LL

http://www.dailyfinance.com/2012/10/22/ancestrycom-sale-investigated-by-securities-attorn/

[djknox]

I bet long term that FTDNA will be acquired by Ancestry.com... say sometime over the next 3 years.

[gtc]

I bet long term that FTDNA will be acquired by Ancestry.com... say sometime over the next 3 years.

Even though every business is for sale at the right price, my feeling is that FTDNA's founder-owners would not sell to Ancestry ... not directly.

[EdwardRHill]

Just another way for those who don't like Ancestry to try to scare others about Ancestry. The company just hit 2 million subscription so maybe its one company that made bad investments in other companies had some other good investment and needed some capital and sold Ancestry because they needed money and Ancestry is a sure bit.

[MMaddi]

Even though every business is for sale at the right price, my feeling is that FTDNA's founder-owners would not sell to Ancestry ... not directly.

A few years ago, it was announced at an FTDNA conference that they had had a buyout offer from Ancestry.com, but turned it down. Then Ancestry ended up buying Relative Genetics.

I don't think that Bennett Greenspan, the founder of FTDNA, is interested in selling the company to anyone. He was an active genealogist before he founded FTDNA, which is why he founded FTDNA. His interest in the company transcends merely making a profit.

[MMaddi]

Just another way for those who don't like Ancestry to try to scare others about Ancestry. The company just hit 2 million subscription so maybe its one company that made bad investments in other companies had some other good investment and needed some capital and sold Ancestry because they needed money and Ancestry is a sure bit.

If you think that a private equity firm buys a company so that they can better serve the customers and aren't interested in making lots of money, if necessary by raising prices and cutting services, then I think you haven't been reading the business pages of your local newspaper very closely in recent years.

[Julie Ann]

If you think that a private equity firm buys a company so that they can better serve the customers and aren't interested in making lots of money, if necessary by raising prices and cutting services, then I think you haven't been reading the business pages of your local newspaper very closely in recent years.

Right on.

I love Anc.com. It is my #1 hobby.
I spend time and money on Anc.com.
They have a great deal of my personal, historical information, as well as my DNA.

My day job requires considerable involvement with outside PE firms.
The recent Anc.com sale should cause us to ask a few questions.

[gtc]

A few years ago, it was announced at an FTDNA conference that they had had a buyout offer from Ancestry.com, but turned it down. Then Ancestry ended up buying Relative Genetics.

I don't think that Bennett Greenspan, the founder of FTDNA, is interested in selling the company to anyone. He was an active genealogist before he founded FTDNA, which is why he founded FTDNA. His interest in the company transcends merely making a profit.

I share your feelings in that regard, nonetheless, a few things need to be considered:

* Bennett and Max are getting to the age when retirement looms

* The science is moving at a fast pace and testing labs need to equipped accordingly, which needs capital

* The competition will grow and new competitors will emerge as the price of entry drops

* In business, big fish tend to eat little the little fish, hence the need to keep growing (often by acquisition)

* And as Andy Groves famously wrote "Only the paranoid survive".

So, one of these days we may see FTDNA do a merger, or even an IPO.

[djknox]

I don't disagree with you MMaddi... but I suspect market dynamics don't favour both players in the same game... and I don't think its practical for consumers to separate dna for genealogy from dna for deep clad purposes. So at some point the way to survive and grow will be to merge and share technology and client bases. I suspect that Mr Greenspan would rather merge and see his efforts continue to bear fruit rather than to die. Of course, it could go the other way too... but this is such a common model in business... the smaller, leaner, smarter company is acquired by the larger company with the resources for sustainability and growth. Anyway, time will tell... but I bet family finder sales are way down now that Ancestry is in the game... and it will likely only get worse unless Ancestry crashes and burns... which certainly is not out of the question I suppose...

[girlperson1]

A few years ago, it was announced at an FTDNA conference that they had had a buyout offer from Ancestry.com, but turned it down. Then Ancestry ended up buying Relative Genetics.

I don't think that Bennett Greenspan, the founder of FTDNA, is interested in selling the company to anyone. He was an active genealogist before he founded FTDNA, which is why he founded FTDNA. His interest in the company transcends merely making a profit.

You and I both hope you're right.