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Valuations of Blog Companies – What about other Media? October 3, 2007

Posted by John in Technology.
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I will be following up on this thread but I’m really facinated with the rumors and discussion.  Here is the link on Techmeme.    Obviously, I am very interested.  The company that I founded, PodTech, is in the same space of blogging but more specifically podcasting and video.  Our uniques are over a million and continue to grow, but we aren’t considered a traditional blogging media company.  With the massive growth (non hype) of the ipod and now Microsoft with Zune and the rumors of a Facebook acquistion, the market for social media is very real.  Companies will get bought.  The question is at what price.  TreeHugger was recently bought for $10m with just over 1 million unique visitors. 

Do uniques matter?  On Matt Ingrams blog it is rumored that the biggest blogs have less than 1.5m uniques?  Is it about reach?  Is it about engagement?  This is the big opportunity.  Whoever can show the metrics on advertising conversion will be a big winner.  It’s a paradox of choice for big media companies.  I’ve been busy over the past 8 months building up PodTech and talking to the capital markets.  It’s interesting to see the perspectives and how they are changing.   Is it about revenue or visitors? 

I will follow this story and the value of new media over the next few months.  It looks like investors and media companies are educating themselves.  This is good news for media entrepreneurs. 

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1. Basic Math - October 3, 2007

Calculating the Techcrunch revenue.

Doing the basic math:
Cnet revenues last year was $400 million say they do 100 million in growth for calculation purposes. – $500 million. Market value of $1.2 billion

Techcrunch Market value (rumor) of $100 million.

Using the Cnet comparable then Techcrunch’s revenue this year should be estimated at: > $40 million

Conclusion: Cnet should buy them if his revenue is even close to $40 million


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