Trade Me founder keen on more tech companies

New Zealand technology companies look set to benefit as Trade Me founder Sam Morgan looks at where to invest in excess of $200 million that he will make from the sale of the company.

Australian media company Fairfax yesterday announced a deal to buy New Zealand's most popular online auction site for $700 million, plus a potential bonus payment of $50 million if certain earnings targets are met over the next two years.

Mr Morgan, who founded Trade Me in 1999, stands to make at least $227 million out of the deal.

Yesterday Mr Morgan said he realised the amount of money he was set to make came with certain responsibilities.

" I have got enough money to buy more than I can possibly eat or drink, so I'm not really a man of expensive tastes."

He told National Radio this morning he was interested in investing some of the money in New Zealand technology companies, and had already invested in a local company that specialises in human resources software.

Mr Morgan said Fairfax stood to do well out of the purchase, pointing out that Trade Me had about 60 per cent of New Zealand's internet traffic, and about 90 per cent of the profits derived from local internet enterprises.

He said there was still plenty of potential for the site to grow, through areas such as classified advertising for jobs, property and vehicles, as well as display advertising.

Mr Morgan expected traffic to grow as more New Zealanders signed up to broadband.

- NZPA