What’s the value of a blog?

It seems that every day we hear bad news about the newspaper industry. Simply put, readers are moving online – and fast.

Of course, one source of news is the blogosphere. It’s amazing that this is a relatively new thing (the first blogs started to pop up in the late 1990s).

With all this interest, the business valuation of blogs should be strong, right?

Well, to shed some light on this, 24/7 Wall Street has a great analysis on the topic. Interestingly enough, it appears that there has been a fall-off in valuations. The main reason: the sluggish ad market, which has become pervasive.

To calculate the business valuations, 24/7 has analyzed blogs by looking at their overall traffic and what kinds of advertising rates they would typically attract. Other factors include: employee headcounts, types of technology platforms, brand strength and growth rates.

So, which ones are the highest? They include:

Gawker Properties - $170 million
Huffington Post - $90 million
The Drudge Report - $48 million

Tags: Blogs, Media, newspaper industry

This entry was posted on Thursday, February 26th, 2009 at 11:27 am and is filed under Business Valuation, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.