36 Comments

Summary:

How much do you think Slashdot is worth? Or Nick Denton’s Gawker Media or TheFaceBook or Boing Boing? You can find out the answers here… in my latest Business 2.0 story, The Return of Monetized Eyeballs. A sharp rebound in the online advertising market, and big […]

How much do you think Slashdot is worth? Or Nick Denton’s Gawker Media or TheFaceBook or Boing Boing? You can find out the answers here… in my latest Business 2.0 story, The Return of Monetized Eyeballs. A sharp rebound in the online advertising market, and big media companies like AOL (a division of Time Warner) buying up folks like Weblogs Inc, has prompted a sudden increase in the value of the “eyeballs,” the dreaded phrase from the early days of Internet mania.

This time, the buyout metrics are slightly different as new variables like cost of customer acquisition and stickiness. In the article, I point out that the acquisition price per unique visitor had fallen from an all time high of $710 (Yahoo’s purchase of Broadcast.com) in April 1999 to about 73 cents in November 2001. How are we doing these days? About $10 a unique visitor! Weblogs Inc. co-founder Jason Calacanis advises “And build a brand. Because without that, you’re going nowhere.”

Full story @ Business 2.0 website.

You’re subscribed! If you like, you can update your settings

  1. Om, According to your valuation model ($38/monthly visitor) my sites are in the 50 million plus range – I can give 50% discount for a cash deal, anyone interested :)

  2. No Soap, Radio! » Blog Archive » Om’s Bloganomics by Narendra Rocherolle Monday, November 28, 2005

    [...] Om Malik has posted some speculative valuations in extending his argument that unique users are worth $38 a piece based on recent acquisitions. [...]

  3. The Geek Guy Rants Monday, November 28, 2005

    Bubble-Era Buyouts, more signs of the Apocalypse

    Well I sure seem to be on a Business 2.0 kick right now so let’s keep with it. On top of the “What’s Nextâ€? column by Om Malik he also has an article called “The Return of the Monetized Eyeballsâ€? in the December issue.
    “For highly traffick…

  4. Om, how much is YOUR site worth then? Are you ready to sell out to THE MAN?

  5. David Newberger Monday, November 28, 2005

    well since it doesn’t look like trackbacks are workign on my site I thought I would do this the old fashion way.

    I wrote the following in “Bubble-Era Buyouts, more signs of the Apocalypse”:
    One more sign of the impending apocalyptic return of the bubble-era. This is the first thought that came to mind when I saw the teaser but I read further.

  6. not a chance brian, for my site is just me. look at most of the sites/properties that have been sold are multi-author properties. and well, so is boing boing, gawker media and everyone we created the matrix for.

    weblogs inc sale, or anyone else that was sold fell into that bucket.

  7. gopi, what are your sites? just wondering. :-)

  8. Om… you know I love you, but this is absurd. Like really, really crazy.

    Weblogs, Inc. was bought by AOL because of revenue and revenue growth. Eyeballs and pageviews had nothing to do with it–zero.

    No one in the marketplace is buying things based on eyeballs–no one. It’s all based on revenue.

    Boingboing, like any other web property, is worth 1-10x revenue and 5-30x earnings. So, if BB does 30-50k a month/360-600k a year (which seems possible to me based on the 5m page views a month) it would be worth between 500k and $3M (based on revenue since with five mouths and server hosting to pay for it doesn’t really have earnings–yet!).

    Paying much more than that amount wouldn’t make much sense unless you were an affinity buyer or buying the talent (which is all part time and spoken for on other projects anyway). You would be much better off putting the $3M to work on hiring a staff of 10 writers @ $100k, putting 1M towards a management team, and $1M towards marketing.

    That’s how these deals tend to go down.. people look at the cost of buying vs. building and the numbers Om puts out are so absurd it’s laughable.

  9. Michael Moncur Monday, November 28, 2005

    I have to agree with Jason, those numbers are insane. I have a popular site that generates a substantial revenue and have turned down a couple of offers to buy it at 10-20x its monthly revenue in the last year.

    According to your $38/monthly visitor model, the site is worth 962 times its monthly revenue, or approximately what it would make in 80 years. I’ll gladly accept an offer for that amount, but I just don’t see one coming.

  10. jason and michael, perhaps first thing would be to realize that eyeballs is metaphor for web content properties.

    if you read the full piece and not just focus on the headline – that is the average price per user – and if you read the full piece you will realize that we are making it categorically clear that not all page views are created equal.

    revenues (and potential revenues) are based on page views, users etc. they don’t happen in isolation. Jason should perhaps explain to me how he was “projecting revenues” if not projecting the page views aka eyeballs.

Comments have been disabled for this post