Is The Topix Deal For $5 Million Or $50 Million?
Bambi Francisco over at MarketWatch is reporting that the funding Topix received from the newspaper companies was less than $5 million.
However, Bambi goes on to say this:
"Separately, the three newspapers bought 75 percent of the company for a market valuation below $100 million, but north of what venture capitalists valued Friendster, according to someone close to the deal. Friendster was a fast-growing social-networking start-up that received a market valuation of $50-plus million in the fall of 2003."
Does that mean the three founders received a $5 million investment and seperately were given another $50 million for the 75% stake?
I doubt it.... but if it is true then the internet bubble is back!
Topix.net is a company with only 9 employees including the unpaid founders, no revenue except for a few dollars in the hat from Google AdSense and not significant traffic. $5 million is a great deal for them ... but $50 million is 1999 all over again.
If you have the real story please let me know ...
I've reposted this at our search engine forum WebProWorld.
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Rich Ord is the CEO of iEntry, Inc. which publishes over 200 websites and email newsletters.
Rich also publishes his blog WebProBlog which focuses on internet business and marketing trends.
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