We’ve been sitting on this one for a few days now. We apologize, but we needed to let it marinate a bit before we were ready to post. Translation: we couldn’t find a time to post at work without our boss finding out.
In any case, the jist of it is an unnamed source said the people at the Huffington Post believe they’re worth $200 million. That’s a far cry from the top 25 most valuable blogs we showed you earlier.
Now, the obvious question is whether HuffPo really is worth that kind of bread. We’ve felt, for the past few years now, that if you’re looking to make money in media, you should lean left. Looks like Arianna Huffington felt the same, and it’s paid off.
We’ll be the first to tell you that we’re no experts in valuation of Web properties, but we do feel that that number is kind of a stretch. Now, just because an “unnamed source” said they threw out an obscene number, does it make it true? Of course not, but if you’re looking to sell, you’re definitely looking to sell high.
Obviously, the valuation comes from the potential of what HuffPo can become … in the right hands, of course. We still find it odd that a Web site, which is still looking to break even and is expected to generate only $6 million to $10 million in revenue this year, would be priced so high.
The NY Times piece talks about the type of expansions that HuffPo has set out for, and it’s quite ambitious. The problem is, will a niche publication — even one as popular as HuffPo — water down its original content and alienate its following with such a broader approach? A wide variety of content is important, but so is quality.
In our humble opinion, we believe acquisitions of popular blogs would be much more affective than hiring new editors to establish a foundation in new sections of coverage. If the company were to acquire prominent blogs (or what have you) in each category of interest, the new pieces bring along their own strong readership that perhaps could be introduced and meshed with HuffPo’s other online properties.
With the trial and error approach of a new staff, and developing a new voice for each department, it could cost the company quite a bit of time and money before the writers even establish their footing.
What do you think? Share your thoughts in the comment section. We’ll respond, we swear! We’re a chatty bunch.