07 December 2008

Ancestry: Future growth opportunities?

For those who may have missed this story on Ancestry's parent company, The Generations Network Inc. (TGN), read it here.

According to the Salt Lake Tribune, the family history company may possibly make acquisitions or go public.

The parent company of online genealogy sites ancestry.com and myfamily.com has hired a CFO from Martha Stewart's empire, signaling that it will explore going public and is looking at acquisitions.

Tim Sullivan, CEO of The Generations Network Inc., lured away Howard Hochhauser from Martha Stewart Living Omnimedia Inc., where Hochhauser also held the post of chief financial officer.

At Martha Stewart, Hochhauser helped launch an initial public offering, and Sullivan indicated that may be an option for The Generations Networks, which is privately held.

"I wouldn't say we have plans to take it public," said Sullivan, but he added that making a public offering is part of the expertise Hochhauser brings to Provo-based Generations.

"We're going to do whatever we should do to maximize value for our shareholders and service our members and subscribers," Sullivan said.

Spectrum Equity Investors (Boston MA and Menlo Park CA) bought out TGN's original majority owners in a $300 million deal. Sullivan said TGN is extremely profitable with more than 1 million paid subscribers and $190 million in annual revenue.

Its position, said Sullivan, may allow it to make "strategic acquisitions." Former CFO David Rinn will run a new corporate group focusing on developing partnerships with other companies and potential acquisitions.

Read the complete story at the link above for more.

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