Lots of talk this morning about AOL buying Bebo for $850MM. My favorite post was over at Silicon Alley Insider where they made a comparison of the per user cost of Bebo versus other deals. Here is the snapsot:
News Corp (NWS)/MySpace deal, July 2005: $580 million, or $21.80 for each of the network’s 27 million uniques.
Hi-Media/Fotolog, August 2007: $90 million, or $9 for each of the network’s 10 million members.
Everyone knows that News Corp made a steal when they bought MySpace back in 2005. Could it be AOL (the most unlikely of companies) made a similiar deal for what is essentially the MySpace of the UK?
UPDATE: A couple of numbers show the deal was pretty pricey and caused others to pass: “Bebo’s revenues for 2006 were only $7 million with $3 million in EBITDA…In 2007, the results are still small, with $20 million in revenues and $5 million in EBITDA. Based on these numbers, AOL (NYSE: TWX) paid a huge 42.5 times revenues and 160 times EBITDA. Even looking at projected numbers (which of course may or may not materialize)–$50 million in revenue and $10 million in EBITDA in 2008; $117 million in revenue and $48 million in revenue in 2009 and $193 million in revenue and $92 million in EBITDA in 2010.”