Huffington Post Now Worth $100 Million
December 2, 2008 by Pablo Palatnik
So, who would have ever thought that you would start a blog and be worth about $100 million dollars one day? That’s the case now with the HuffingtonPost.com. If you haven’t heard of HuffingtonPost.com, it is the largest new blog or at least probably the most popular right now. This new estimate comes after the post has just secured $25 million in investor funding.
Peter Kafka, from AllThingsD.com, has a good article comparing the post to Jim Cramers theStreet.com, which is also estimated at around $100 million and quotes an article on 24/7 Wall St. article by Douglas McIntyre:
“Huffington has several important advantages over TheStreet. For starters, it does not rely on one person for most of its traffic. If Jim Cramer left TSCM, the company would be in real trouble.
Second, Huffington has diversified beyond it political news base. Over the next year or so, it will become clear whether that was a good idea or not. Adding “style” and “entertainment” sections puts it into competition with a lot of other online success stories.
Third, Huffington aggregates a lot of content from around the web. The cost of doing this is remarkably low. The company pays little if anything to most of its bloggers. TheStreet has a relatively large staff and produces most of its own content.
The final difference between the two companies is probably the most telling. At its current rate of growth, which could be hurt by the end of the 2008 election process, Huffington may double in size again over the next year or so, if its efforts to diversify its content works.
It would be hard to find analysts who believe TSCM is going to expand its audience or revenue at a rate of 100%.”
Now that the HuffingtonPost.com is estimated to be worth $100 mil, it can probably sell for $300-$400 mil, or is it overpriced?
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