NYMag does a worship piece on Daily Candy, and joins the valuation-inflation gang, along with WSJ. After WSJ came out with a story about the e-mail newsletter firm saying it could fetch as much as $100 million in sale, this piece picks up from where WSJ left, and says it should be $200 million. And while it does quote a somewhat more rationale one-time potential buyer towards the end of the story where the source brings it down to earth levels, in the end, it trips up in its own saccharine web (I know, my phraseology here is ridiculous, but so is the story I am quoting).
Instead of the $20 million in 2005 revenues as the WSJ story mentioned, the source quoted said the company had about $9 million in revenue in 2005 and was projecting $18 million for 2006. The source also notes a major difference between DailyCandy and the likes of iVillage: a conspicuous lack of any tangible community. DailyCandy is not quite a Website–it doesn’t have page views; most customers visit the site DailyCandy.com only once–to subscribe. Its one-sidedness makes DailyCandy “the odd duck among all these other animals,” says the potential buyer. “I do think it has value, but the lack of page views makes it hard to monetize even by Web standards.”
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