Did Duncan Get Enough?


Duncan sold the Blog Herald for an undisclosed sum. I’ve heard figures but I won’t print them here. We’ll wait for the official word if and when it comes.

A lot of few people emailed me to say I was a nut at putting the value of Blog Herald so high. To those folks I point to today’s Wall Street Journal. 

Robert Pittman, former American Online official, has put his small web business, called Daily Candy, up for sale, a deal which will be an important measure for the pace and valuation of web deal making, writes The Wall Street Journal.

After buying a controlling stake in Daily Candy – which produces urbane email newsletters that make daily shopping, food and media recommendations – in 2003 for $3.5 million, Pittman could sell the business for more than $100 million. Some potential buyers fear that all the best web properties have already been bought, meaning the remaining buyers may have to pay high prices for marginal properties.

Explore posts in the same categories: blog herald, blog networks, Duncan Riley, money, old media

17 Comments on “Did Duncan Get Enough?”

  1. Andy Hagans Says:

    Sorry man but the market’s opinion means more than yours or even WSJ’s. Web sites with rev streams are going for .5-5 years profit. Most more towards the low end of that range, but even stuff I consider “good” goes for 2-3.

  2. RT Says:

    The best web properties have been bought? I don’t think so. I do think Calacanis got screwed for what he got…considering site like flickr, del.icio.us and webjay went for around 30mil.

    Anyway, how many people revice the dailycandy newletter? Must be a hell of a lot to get $100mil…

  3. chartreuse Says:

    I kinda agree with you Andy. Value is in the eye of the market. And the market bases it’s prices a lot of times arbitrarily.

    I have no idea what Duncan got. But he should be happy. I know it went higher than the $25,000 I predicted.

  4. Y’know, as an individual, I’d be happy to have gotten anywhere from 25-50K if I owned the Blog Herald. I don’t know what Dunc got for it in the end, but the reality is that it’s not a bad payoff to work 10 hours a week for a couple of years and get 25K. It’s not great, but it isn’t bad either. And, if he got 50K, it’s an okay average wage actually 🙂

  5. chartreuse Says:

    good point, Jeremy.

  6. Andy Hagans Says:

    Calacanis got screwed on Weblogs Inc? Surely you jest. Aside from Engadget the content on that network is pure blah (not that I’m against large scale boring content production, but in no way do I expect that people would pay a premium for it).

    WIN got purchased at a multiple >20yrs. That is absolutely insane. AOL just bought it for the press, for Mr Calacanis as an employee, and for people to think they are somehow relevant again. The content’s value, and the revenue from WIN, is marginal.

  7. chartreuse Says:

    Calacanis is the luckiest blogger in the history of the universe.
    Making that profitable will be AOL’s Vietnam…

  8. Dave Says:

    Andy well said , though I thought it was about 10 years multiple , unless your taking the 40 million figure and not the 20/ 25 mill ? either way for a 2 year old business, I could take getting screwed like that.

  9. RT Says:

    Andy you are right. But he has content in his site and hosts advertising, which i’m sure is NO big deal to AOL. They didn;t buy it for the site’s revenue I know.

    I was just comparing it to del.icio.us and some others that got bought for a ridiculous amount when they offer no income and have no real content other than everyone else’s content. He is a lucky guy.Who is next? Denton?

  10. Denton won’t sell. He’s too principled to sell. The real question’ll become, who’s going to be coming shopping, and who’s going to be #3 and #4 when they do?

  11. RT Says:

    Hmm…I would guess, in the next 3-7 years, mainstream media that can’t/don’t want to keep up with what would be then large online media & blog networks. They could find a blog that do well in their niche and make offers on them individually.

  12. Blog Herald as a website isn’t worth much.

    But Blog Herald with Duncan at the helm, is worth something.

    Blogs are a personal form of journalism. Take the “person” out, and what do you have left?

  13. Brian Clark Says:

    Not all blogs are journalism. That’s just ridiculous.

  14. stephane Says:

    brian – you’re right! and who knows what dailycandy is, because sometimes it’s “paid content” and sometimes it’s not. But the whole idea that the best web properties are spoken for its just idiotic. i mean i’ve subscribed to flavorpill here in sf for a couple years and they haven’t put themselves up for sale. I would really like to know how much cash dailycandy is making… i bet it’s not that much.

  15. […] Chartreuse has a good article concerning the BlogHerald sale. Recently I was involved in evaluating site values and what not. One of them was a movie blog I was highly interested in brokering for one particular client who likes to buy web sites, and resell them. It was a touch pricey BINing at 8,000 dollars. It had nearly the same amount of traffic as the Blog Herald and would have been a huge investment for just about anyone looking to get competitive in the movie blog sector. And while its not the industry leader, nor is it making as much as Duncan’s BlogHerald. It’s a winning site. In the end the blog client decided that no he wouldn’t be bidding on CinemaEye, and he would continue trusting my vision for great sites, and site values. I estimated that Blog Herald was roughly worth 25k back when it was sold the first time, and I estimated that Cinema Eye was worth 3k based on its readership, and its profits. […]

  16. […] Duncan’s sale of the Blog Herald for an undisclosed (but not enough) sum. […]

  17. colemann Says:

    Great job guys…

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