The New York Times and New York mag both lead the week with return-of-the-dot-com boom stories about MySpace and DailyCandy, respectively. Conclusion: it's different this time. Sort of. Kurt Andersen, in a separate column, interviews former Flatiron Partner Fred Wilson, who explains how:
“It doesn’t seem like really dumb things are getting funded,” Fred says. “You’re largely not seeing Webvans and Kozmos and Urban Box Offices.”
Notes Andersen: "The latter two really dumb companies were financed by Flatiron."
New York mag also examines the much-buzzed-about (inasmuch as an 8-to-9-figure deal that doesn't involve a bulge-bracket investment bank or Carl Icahn can be "much-buzzed about") sale of Daily Candy. Reporter Michael Idov makes the completely inexplicable assertion that it's "impossible" to determine the value of Daily Candy:
It’s nearly impossible to apply the usual valuation formulas to DailyCandy. According to the Wall Street Journal, the company projects revenue of “somewhere less than $20 million” this year. Most successful businesses go on sale valued at least ten times their yearly revenue, so by this standard, DailyCandy should cost $200 million or more.
We're mailing him a copy of Damodaran on Valuation, but in the meantime, we'll stick our finger in the air, just like everyone else: $48 million.**
**That said, we hope it's closer to $100 million, for our own selfish reasons.