Richard Morgan of The Deal predicts that The Business Insider (us) will be bought by a huge media company for more than the value of Fortune Magazine.
Richard Morgan, The Deal: Complementary to this new big [Bloomberg, et al] is a new small. These are the Huffington Posts, if you will, of business media. They’re lean, niche and often Internet-only.
Some, such as paidContent.org and Mediabistro.com, have already drawn the envy of traditional journalists for their lucrative exits. Others, such as Breakingviews.com, are being swallowed by one of the bigs — Thomson Reuters, in this case. And still others, such as The Business Insider (a two-year-old blog network that already boasts 2.2 million monthly uniques), are amassing impressive followings…
In its pursuit of BusinessWeek, ZelnickMedia not only teamed with an institution, Thomson Reuters, but with a person, Gordon Crovitz, the former publisher of The Wall Street Journal. ZelnickMedia partner Jim Friedlich, the former Dow Jones chief of global sales and marketing, had worked alongside Crovitz to establish WSJ.com as a successful paid online site.
However, in addition to making a run at BusinessWeek this year and Reed Business Information last year, Crovitz and Friedlich have been chasing deals in business media’s new small sector. Last May, for instance, they joined investors Herbert Allen, Kevin Ryan and Marc Andreessen in backing The Business Insider.
This previously mentioned blog network, like other members of business media’s new small, seems destined to be scooped up someday by a member of the new big. And by then it will likely command a valuation that exceeds the one Fortune fetches when that stuck-in-the-middle title gets sold.
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