On the heels of Kerim Baran's presentation at the April meeting of Istanbul NEG, where he announced the launch of 7inci, a DailyCandy-like web service, a new New York Magazine article is stoking the fire on the rumors of DailyCandy's potential sale. The new price tag? $200 million.
It’s nearly impossible to apply the usual valuation formulas to DailyCandy. According to the Wall Street Journal, the company projects revenue of “somewhere less than $20 million” this year. Most successful businesses go on sale valued at least ten times their yearly revenue, so by this standard, DailyCandy should cost $200 million or more.
I find it amusing that old media sometimes gets tricked into blowing the hot air into some of these new media balloons. The previous price set for DailyCandy was $100 million, and that time it was the WSJ! :) Bob Pittman's doing a good job of getting them to bid up his auction (He'd paid $3.5m for DailyCandy in 2003).
Rafat thinks that these valuations are little more than amusing reading. I get ready to agree with him, but then, have to stop and think about the value of attention, and remind myself on the rumored $2b price tag thrown around for The Facebook a few weeks ago.
We'll get one answer if and when DailyCandy gets sold.