"Domain Name Development
17M monthly uniques
x
$9.64 per head
= $164M
Gawker Media
28.5M monthly uniques
x
$9.64 per head
= $274M
Data source: Gawker Media, although they don't provide data for their popular Fleshbot site.
About.com
21M monthly uniques
x
$19 per head
= $400M (Acquired by New York Times)
Marketwatch
7M monthly unique visitors
x
$74 per head
= $519M (acquired by Dow Jones)
Slate
5M monthly unique visitors
x
$2 per head
= $10M (acquired by Washington Post)"
Such valuations are surely interesting being a major investor into a blogging network like Creative Weblogging but they are non-sense. In normal (not irrational like 1999) investors are focused on two things revenue and profits. Even a site network with 30 million unique visitors is worth nothing as it can be hard to monetize a visitor if you are in the wrong industry.
Just take a look at very successful site in terms of traffic like defamer.com or Gawker.com itself. Though to find sponsors there or even sell that to any new advertiser - traffic means nothing as long as it does not enable advertisers to find exactly their target group.
So paying a multiple of 10 for yearly revenues (as NYT did) is an admirable investment but making valuations on unique visitors is just silly.
Thanks Mario for the hint.
Mr Wong
Vote for back in the old days?:
|
Rating: 6.00 out of 2 vote(s) cast.
|
| RSS | See all blog subscribe options |
|
What is RSS? | |
| Yahoo! |
|
| Addthis |
|
| Bloglines |
|
| Newsletter | |
| Follow us on Twitter! |















