eBaum’s World, a viral video site that has been on the block for a while now, is being bought by HandHeld Entertainment for $15 million in cash and a potential earn-out of about $50 million over the next three years.
Along with the purchase comes some interesting data about eBaum’s World’s revenue-to-visitor ratio, something that’s rarely public for video sites. According to today’s press release, the site generated $5.2 million in revenue and $1.6 in net income before taxes in 2006. The stated traffic figures are not exactly in the most easy-to-comprehend terms — 2.5 billion page views “during the past 12 months.”
We asked comScore for an outside estimate were told the site had 2.3 million U.S. unique video viewers in June who watched a total of 25.6 million videos. So, in very rough terms, Handheld is paying about $6.50 per unique. Update: eBaum’s World PR says the site has an average of 10 million unique visitors per month. Unfortunately these discrepancies are pretty normal on the web!
eBaum’s World, launched in 1998, is run by Eric Bauman and his dad Neil Bauman. It has generated some grumbles in from content creators for posting and re-branding other people’s content and not being terribly receptive to their takedown requests.
Shares of HandHeld Entetainment jumped this morning, but are now trading down a cent at $1.8099. Last time we wrote about the company, it was because it had bought another video site, Putfile.