AOL Buying Travel Site WAYN For $200 Million? Doubtful.

TechCrunch UK’s Mike Butcher reports a rumour that AOL is looking to buy British travel site Where Are You Now? (WAYN) for $200 million, citing “three well-placed sources.”

One reason to doubt the story: The travel site says it’s not happening. A more practical one: While it’s conceivable that AOL (TWX) would purchase a travel-focused social network, that price is way too high. Butcher says WAYN is on pace for $4.5 million in revenue this year, which would give the deal a 44.4x multiple. We could see a multiple of 10x to 20x, perhaps: Something in the $45 million – $90 million range.

The main argument for the multiple seems to be something along the lines of “Hey, CBS paid $280 million for last.FM last year, and that was a crazy deal, too.” Can’t argue with that.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.