Can You Spare Some Qatar, Me Brothers?
"If Current TV Was Worth $500 Million, How Is BuzzFeed Worth $200 Million?," Stacy McCain asks:
Look, I kinda understood when a desperate sinkhole like AOL was willing to fork over $315 million for HuffPo. Even if it didn’t make a lick of sense as an investment, this is AOL we’re talking about — a company that hasn’t really made sense in a long, long time, and whose executives were therefore willing to pay a premium for buzz and market share, without any genuine likelihood of turning a profit. So . . .
What sucker does BuzzFeed have in mind? Where is the obsolete and desperate-to-seem-relevant circa-1994 online enterprise that will pay $200 million dollars for a site that has already (evidently) burned through its first $27 million of capital? Maybe . . . Yahoo?
If a bunch of rich Arabs can buy an entire cable TV network for $500 million — even a useless turd like Current TV — does it really make sense for anyone to pay $200 million for a mere Web site?
Color me skeptical. But hey . . .
@instapundit I don't know about you, but if Qatar is buying, I'm selling.
— Robert Stacy McCain (@rsmccain) January 5, 2013
Heh indeed, as the person that Tweet was intended for would say. Oh -- and read the whole thing.
(Headline via Mr. Alexander DeLarge, who can be reached at Kubrick-655321.)