Blog or Forum Worth, Value and Valuation Multiples
Entering a Google search to help determine what the value or worth of your blog or forum is leads you to many web based calculators. Most who enter the requested data into these value or worth calculators recognize its a gimmick designed to satisfy one’s curiosity. Out of curiosity, using the Huffington Post data the calculator returns a valuation of $64,551, 749 dollars, a far cry from the $315 million Arianna received from AOL. AOL paid an extremely healthy 9x multiple of reported gross revenues of $35 million. Perhaps this is the acquisition they get right?
Outside of the top 25 largest blogs or forums who may be lucky to benchmark their valuations based on the multiples paid for Huffington Post, the rest of the crowd will have to rely on the more mainstream multiples of EBITDA.
To learn more about current market conditions and to sell your blog or forum with expert guidance please do not hesitate to contact an m&a advisor at iMerge Advisors.
A review of closed transactions by iMerge Advisors, other firms and acquiring companies themselves helps establish benchmarks as to what blog and forum owners can expect for valuations multiples. For example, the publicly traded company, Crowdgather (CRWG.ob) has acquired several forums of the past year and a half. Recently, Crowdgather acquired PbNation.com for $3.2 million ($1.4 million cash 1.150 m shares of stock at .87 cents) along with an additional $800,000 if certain performance measures are met. Further analysis of SEC filings indicates multiples paid of EBITDA range from as low as 2x to a high of 6x. Its important to note that on average all deals included approximately 50% stock in CRWG as part of the terms of the transaction.
Recently a buyside client of iMerge Advisors entered into a definitive agreement to acquire a forum in the wedding vertical for a 3.67x EBITDA multiple.
Blog or Forum valuation multiples will be based primarily on earnings with added consideration for growth rates in revenues, traffic, members, activity levels and SEO rankings.
To speak with an M&A advisor about current market conditions and to sell your blog or forum with expert guidance please complete the form below.