PaidContent does some extrapolation from Jupitermedia’s (JUPM) 10-Q and deduces that recent acquisition MediaBistro is on pace to do $8 million a year, and that Jupiter paid roughly 3x revenue to acquire the company. Which is exactly the number someone whispered into our ear last week.
But PC doesn’t address why Laurel Touby’s company went for a paltry 3x — after all, in these frothy times, shouldn’t any self-respecting Web site be able to command a 10x valuation or more? Our whisperer has a theory…
Laurel only got 3x for her web company, we hear, because MediaBistro isn’t really a web company, in a traditional sense. Half of it is: We hear that the part that provides job listings, and to a much lesser extent, content via sites like FishbowlNY, generates about $4 million a year. But the other $4 million comes from MB’s services, like online and offline education, seminars, workshops, forums, etc. Which are all fine businesses, but labour intensive and much harder to scale than straight web plays.
MB’s business breakdown makes a lot of sense for an buyer like JUPM’s Alan Meckler, who has a lot of familiarity with the tradeshow/conference industry, and is optimistic about what he can do with MB’s other service lines as well. But it also explains why he bought an Internet company without paying an Internet premium.
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