As previously reported, Comcast (CMCSA) was indeed interested in buying DailyCandy. But they ended up paying much more than the $75 million we head about earlier this month — the cable company is paying Bob Pittman’s Pilot Group Ventures $125 million for newsletter business, a source close to the sale tells us.
We hear that Viacom was also interested in the property, which has been off and on the blocks for the last few years, and had been considering paying $120 million. We also hear the company dropped out of the bidding process, run by Web 2.0 bankers Montgomery & Co., in June. In a congratulatory letter to the DailyCandy staff, Pittman says that the company is on track to hit $25 million in revenue this year and EBITDA of “well over” $10 million:
“I have been associated with the start-up, turnaround or acceleration of many companies and major brands, and rarely have I seen the kind of creativity, commitment and passion I’ve seen day in and day out at DailyCandy. And the results speak for themselves: since we made our investment in 2003, subscriptions have grown from just over 200,000 to over 2.5 million.”
This is a nice win for Pilot (disclosure: Pilot is an investor in SAI parent Silicon Alley Media), which paid something in the $3 million range for Dany Levy’s company in 2003. Meanwhile this continues a string of purchases for Comcast’s digital group, which has now spent more than $600 million on M&A in the last two years.
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