Late yesterday I learned that FlyerTalk, the popular travel community operated by frequent flier guru Randy Petersen, was being sold to Internet Brands. In response to my inquiries, the acquiring company issued a brief statement that it “looked forward to having FlyerTalk join the Internet Brands’ family of travel websites.” It did not disclose any other details, including terms of the deal.
It’s a significant transaction, both for Internet Brands — which owns sites such as Wikitravel and Cruisemates — and for Petersen, who is the most recognized loyalty-program expert in the United States.
With this acquisition, Internet Brands becomes a major player in the Web 2.0-travel game. And Randy? Well, apparently he’ll get the best of both worlds. He’ll have a day-to-day role at FlyerTalk for the next four years plus the cash or shares from the deal. Not bad.
I e-mailed a list of follow-up questions about the acquisition to Internet Brands’ public relations department. Although it did not respond to them yesterday, Petersen sent the following e-mail to the moderators of FlyerTalk late in the evening which effectively answers my queries …
To the Moderators of FlyerTalk:
Greetings and I trust this note finds you all well. In the next day or so, there will be some news released and I’d like you to be among the very first I share this news with.
A few weeks ago I completed a transaction to sell FlyerTalk. As I noted to the moderators in a meeting last October, I had been approached last September to sell FlyerTalk and I had been torn at the time because I never had any plans at all but to try and see FlyerTalk pursue it’s goal to be the best resource in the world on the topic if miles and points and along the way, open up many new friendships among the Road Warriors whom I have been proud to be part of for more than 20 years now. As I explained to the Moderators at that meetings, I was inclined to do so since I feel at times I let FlyerTalk and the Moderators down in not being able to devote more time to the community. But as you all know, I have a number of businesses that date before FlyerTalk and a staff of employees I feel very dedicated to. But then, I also feel the future for FlyerTalk is always brighter the next day and want to always be part of that.
Anyways, I turned down that offer last September. Well, in November, the same group came back and reiterated that they were interested in acquiring FlyerTalk. Again, my answer was “No.” Two weeks later they contacted me again and suggested at least they would like to meet me. I’m the Talking Head and love to exhibit the pride I have in FlyerTalk and agreed for their visit. After a day at the House of Miles, they apparently were more interested in FlyerTalk and my views of the future and promptly made another offer. I went from No to Maybe.
A long story short, the seventh offer worked as in the process I had got to know the principals and where they were going. Along the way, others joined in the interest of acquiring FlyerTalk including American Express, TripReports/Expedia. Travelocity/IGOUGO, Washington Post/Newsweek Interactive and Conde Nast Interactive. At the end of the day, FlyerTalk did not go to the highest bidder – as it was never a cash out play. The new owner – Internet Brands – wasn’t even among the three highest offers, but I felt strongly that if I were to sell FlyerTalk, that they were the best partner for the members and myself and FlyerTalk’s future. Why them? Well, first of all they weren’t interested in making any changes. Second of all and more important to me, unlike some of the others, they did not seem to care what were the financial gains of FlyerTalk. They felt it fit into a growing collection of other travel Web sites they have acquired and was one of the only ones that really has captivated the business traveler.
So, what does it mean? Really not much. I will continue as the face and mouth of FlyerTalk for the next four years. I continue to make the decisions on FlyerTalk similar to any I have made in the past. Mikel, Tim, Joshua, Karen and others continue their roles for the immediate and mid-term future.
No, I’m not retiring. No it does not include any other businesses I am involved with. I’ll stay busy with InsideFlyer, WebFlyer and several other ideas I have.
Bottom line: FlyerTalk remains in my blood and I truest it will remain in yours as well. It’s not the end of FlyerTalk and maybe is the beginning of its next phase and that is something I look forward to as well.
Questions? I’m still the “Founder” of FlyerTalk and will always bear that title with pride.
Among the things that Internet Brands was intrigued about was the Moderator group and for good reason. As we narrowed our talks to a term sheet, i demanded that specific language be included that identifies the value the Moderators have to FlyerTalk and that the practices I have established for them, including supporting the bi-annual meetings, financial incentives for attendance to these meetings and other things related to this group be a requirement for any deal. They said they had never heard of similar requirements to any deal they have ever done but if it was important to me – it was and you are – they would include it in the language.
I remain as committed to you as you are to FlyerTalk and let’s never allow that to change.
And one more thing, you got questions? I’ve got answers.
Thank you all very much.
Cheers,
Randy
Update: This morning, Internet Brands sent me the following statement: “Per long-standing policy at Internet Brands, we don’t disclose terms about acquisitions. However, I can confirm that Internet Brands did purchase Flyertalk.com. Randy will have an active role for years to come, largely unchanged from his role to date. As for the future, the site will still be called Flyertalk and the bloggers will remain.”
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{ 3 comments… read them below or add one }
I welcome FlyerTalk to the family of travel sites at Internet Brands. Internet Brands has been a great company to work with in my experience, and I believe our site serves as proof that an IB acquisition will not change the editorial philosophy of a web site.
I and the other two original owners of Flyertalk.com gave the site to Randy for his use. It was understood amongst us that it would remain in his control in trust for the community. I guess it just shows what honor thy word means to some people.
I am one of the two others that David mentions above. Knowing that nothing lasts forever, I have no problem myself with Randy selling his baby successfully.