September 30, 2003
Linkdump
Okay, here's a bunch of stuff I've managed to collect recently but don't have tons of time to blog about.
- I've recently become fond of the TV show "American Dreams." Derek reminded me that he blogged it a while back.
- Debian Backports - run that new stuff on an older system.
- XML Resume Library - write one resume, render it in many formats: text, pdf, html, etc. Cool stuff.
- Killing Comment Spam For Dummies - more good stuff from Jay
- JR on "off-sites", the latest management fad at work. Really.
- Kittie Porn. Really. It's okay to look.
- Incredible Adventures - maybe something to do for my next birthday (the big 3-0, ya know).
- A9 - the Amazon-backed search startup led by ex-Yahoo Chief Scientist Udi Manber. Udi's probably the smartest guy I've ever met.
- The Register: Google buys search engine - PageRank(tm) RIP?. They linked to me, so it's only fair to link back. :-)
- Shutterbug - a great photoblog.
There, I've flushed my buffer. I feel better now.
Damn, I love KQED
Al Franken is on City Arts & Lectures rignt now.
Kick Ass!
My pledge dollars at work...
We're All Smoking Crack in Silicon Valley (and Getting Rich)
Or that must be what it looks like to your average corn farmer in Nebraska.
I don't read the financial media much, but having spent 3 years
working on Yahoo! Finance,
it's hard not to do so once in a while. I came across a story today
titled "Is
Google worth as much as Yahoo?" by Bambi Francisco (love that
name).
As is often the case with CBS MarketWatch stories, it goes into quite a bit more than the headline might lead you to believe. In this case, she spends some time discussing Google's self-appraised valuation of $17-$19 billion and then draws to a close with:
At the bandied-about price, Google would also be valued at a slight discount to Yahoo and possibly greater than Amazon.com. Both of those are arguably mature, established, not to mention older, companies with relatively proven track records.
And then she turns her focus to Friendster.
Google's outlandish valuation is likely why Friendster, the fast-growing online dating/social-networking company, is leaning towards accepting funds from blue chip venture capitalists rather than selling to the search company, according to those familiar with the situation. The word is that Friendster had conversations with Google to be bought out for about $30 million to $40 million in Google stock at an $18 billion market valuation for Google. At that price Friendster's upside may be limited, to say the least.
Of course, she reminds us that
Friendster has yet to post sales, much less a profit. Yet Friendster has apparently secured $13 million in funding, giving it a valuation of $53 million. Jonathan Abrams, Friendster's founder has not returned my call seeking comment.
If that seems a bit insane, we're reminded that:
InterActiveCorp's online dating services, including Match.com, Udate.com and Kiss.com, have 857,000 paying subscribers, as of the end of second quarter. IAC estimates that its online dating services will earn $38 million in cash flow this year, up from $28 million. Applying a 20 multiple on cash generated would give IAC's dating business practically an $800 million market cap, if it were a stand-alone company. This back-of-the-envelope-valuation exercise makes a potential market cap of $50 million for Friendster far more reasonable, say those familiar with the situation. That's because Match alone has 9 million subscribers (only some are paying subscribers) while Friendster has 2 million subscribers.
Valuations are funny things, aren't they?
[Disclaimer: I know several of the guys at Friendster, including Jonathan. I mean no disrespect. They're working hard to build a company and a service in shitty economic times. I just can't help but to be amused by this Google inspired flashback to the late 90s.]