DISQUS

lee · 2 years ago

sorry not to harp - but $40 - $75 million for a site with 6 million page views "is not very high" come on are you kidding - i dont know their revenues but it sounds like they are not making much money less than $1,000,000 and probably much less per year based upon how you said they serve ads.

which means at that price range they are selling the company from anywhere from 45x to 100+x revenues since when is that not a good price and a big sale.

i dont mean to harp but the adjectives sv journos use really annoy me since becasue you really overhype - you think this site should be worth much more than that please explain.

i mean this in a constructive way so i apologize in advance for the tone but i am curious as to your justification the site should be worth much more.

Sramana Mitra · 2 years ago

For a long time, I have believed that eBay should have spent money on advertising venue oriented companies, and thought that the Skype acquisition was a stupid move. Only now, it seems to me that eBay's leadership is coming to the same conclusion! Read the rest of my thesis.

Matt Marshall · 2 years ago

That's fair, Lee, but if StumbleUpon is really among the top 25 hottest Web 2.0 sites (see http://www.ebizmba.com/articles/top25-web2.html), and showing all this momentum, a sale of a mere $40M isn't exactly encouraging for the 500 other Web 2.0 companies out there. In StumbleUpon's case, it's a great price, though, when you consider how little capital they took.

WTF · 2 years ago

why should the amount of capital they took affect the sale price? To me, it should be based off of an EBITDA or revenue multiple, along w/ cash on hand, and judging by how much projected growth is ahead of them. So what if they took $100k or $20MM.

Matt Marshall · 2 years ago

It doesn't affect the sales price. It's the other way around. The sales price is extremely lucrative for the company, precisely because it raised such little capital.