Internet Brands
Overview
Internet Brands is a leading private digital media, marketing services, and software company headquartered in El Segundo, California, USA. Founded on June 27, 1998, originally under the name CarsDirect, the company now operates over 100 websites across various market verticals, including automotive, health, legal, and travel. Operating under the trade name MH Sub I, LLC, Internet Brands excels in online media, community, e-commerce, and SaaS businesses.
Business Structure and Operations
Key Verticals:
1. Health: Comprised of WebMD and Medscape—acquired in 2017 for $2.8 billion—additional acquisitions include Grupo SANED and Mercury Healthcare.
2. Legal: Incorporates platforms like FindLaw, Avvo, and Nolo, collectively rebranded as Martindale-Avvo.
3. Automotive: Stemming from its CarsDirect.com origins, this vertical continues to drive growth in the automotive market.
4. Home/Travel: Bolstered by acquisitions like Fodor’s travel guides and several travel-related online communities.
Key Acquisitions:
- WebMD: Enhanced by acquisitions of Krames, ADDitude, and Healthwise.
- Pulsepoint: Acquired in 2021, scaling the company's programmatic ad tech capabilities.
- Henry Schein One: A joint venture focused on the dental sector, boosting their SaaS and e-commerce offerings in healthcare.
Revenue Streams:
The company generates approximately 70% of its revenues from advertising, mainly through over 40,000 small to medium enterprise accounts.
Leadership
Robert N. Brisco, CEO since 1999 and former President of Universal Studios Hollywood, leads Internet Brands. Supporting Brisco is Scott A. Friedman as CFO and Chuck Hoover as Chief Marketing Officer. This leadership team steers the company towards integrating market trends and crafting comprehensive solutions across its portfolio.
Ownership and Valuation
Owned by Kohlberg Kravis Roberts & Co. L.P., Warburg Pincus, and Temasek, Internet Brands transitioned from a public to a private entity after Hellman & Friedman's acquisition in 2010 and a subsequent sale to KKR in 2014 for $1.1 billion.
Recent Developments and Future Directions
Internet Brands continues to strengthen its presence in healthcare and legal markets, focusing on strategic acquisitions to diversify its offerings. The company's global expansion in health information services and integrated marketing platforms shows its commitment to growth and market adaptation.
Controversies
Challenges include legal disputes related to vBulletin and Model Mayhem, reflecting complex stakeholder relationships and intellectual property challenges in digital environments.
Competitive Profiling
Key Competitors
1. Instapage
A competitor in the digital marketing and landing page sector, Instapage offers solutions designed to optimize advertising through personalized, conversion-focused landing pages. Founded in 2012 and based in San Francisco, California, Instapage services industries like e-commerce, education, and finance and boasts a global presence across six continents.
2. CARS.COM
Prominent in the automotive classifieds sector, CARS.COM is based in Chicago, Illinois, and ranks as the second-largest automotive classified website in the U.S. It includes platforms like Auto.com and DealerRater and became a publicly traded entity on the NYSE in 2017.
3. Cogo Labs
Operating as a technology-driven venture accelerator from Cambridge, MA, Cogo Labs uses big data to support and grow consumer technology startups, fostering high-growth web companies through an entrepreneurial culture.
4. AutoNation
A leader in the car retail industry, AutoNation is headquartered in Fort Lauderdale, Florida, with over 300 retail outlets. Since its founding in 1996, the company emphasizes strategic acquisitions, like various car rental companies, to meet the changing market demands.
5. Triares
Specializing in entrepreneurship and technology solutions, Triares addresses global challenges with its business incubation and technology sectors. Based in Woburn, MA, it integrates technology and innovation for impactful solutions.
Competitive Analysis
Internet Brands holds a strong competitive standing, being ranked 3rd in Gender Score compared to its competitors, signaling its commitment to diversity and inclusion. The company's diverse portfolio across multiple sectors like automotive classifieds, digital marketing, and consumer technology positions it well against competitors like Pinterest, eBay, and RealNetworks. Its ability to sustain competitiveness lies in the varied nature of its portfolio and its adaptive strategies in meeting diverse market demands.