> I am not sure "they are making money" really
> justifies this purchase.
Since when has "they make money" (profit) ever justified any Internet company purchase? It seems to me that, over time, the opposite has proven true; "they lose money" is the far better justification.
Doesn't it go something like this?:
1. We should buy Company_X!
2. But they post a large net loss every quarter, and their losses are increasing?!
3. But they have a userbase of Y million customers and this number is increasing at Z%/month (along with other metrics like unique page views/month, percentage of returning purchase customers/month, or whatever statistics can be squeezed out of the customer data to make them look uber-attractive to someone)!!! Just think what will happen when all Y million of those users become _our_ customers!!!
Clemmitt (who knows there's money to be made on this new-fangled Internet but is too stupid to figure out how ;^)