October 21, 2005

Claim: Rant Worth More Than $20K

Report Values Rant at USD 20,000
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Directors Jubilant at "One Hundred-Fold Return,"
But at Present Have No Plans to Sell

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Analyst: "Blogs Are the New Tulips"
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My blog is worth $20,323.44.
How much is your blog worth?

by HARRIS SCHWED
Financial Rant

HAMILTON, Bermuda -- Calculations from the Business Opportunities Weblog have given Benjamin Kepple's Daily Rant an estimated value upwards of $20,000, Benjamin Kepple's Daily Rant Inc. announced today.

The valuation, which is based on the number of external links heading to a given site, is derived from the amount of money which America Online Inc. paid for Weblogs Inc. earlier this year. The report prompted jubliation among The Rant's shareholders, as well as a bit of amazement.

"It's been about four years since we started blogging, but this type of incredible growth is downright staggering," said Benjamin Kepple, The Rant's chief executive, in a conference call. "In my wildest dreams, I would never have thought this type of return was possible from my initial investment."

Kepple said his firm had no plans at present to sell to an outside buyer, but would consider any serious offers which involved great sums of cash. It was, he said, a matter of "timing the peak."

"Clearly, we're in the midst of a speculative bubble, and I can only hope that desperate or crazed executives looking for growth at all costs send us an offer which properly values our operations," said Kepple, still amazed the blog was theoretically worth more than a factory-fresh pre-owned sedan.

While the news is certainly good for The Rant -- and Kepple, who owns or controls more than half of it -- analysts voiced skepticism both at The Rant's valuation and the AOL-Weblogs Inc. deal, the latter of which was valued between $25 million and $40 million.

"Wait a minute. They paid what for what?" asked Adriaen Pauw, an analyst with Caveat Emptor Admirael van Ejck, the London-based brokerage house. "It's this type of silly chasing for the quick victory which bit them the last time!"

"It's as if blogs are the new tulips," Pauw said. "I mean, I don't care how much traffic they get, $25 million is -- I mean, $25 million? Jesus God in Heaven."

(via the much-more capitalized Dean's World)

Posted by Benjamin Kepple at October 21, 2005 10:49 AM | TrackBack
Comments

Clearly the market for blog sites is getting super heated but high quality content is always a scarce commodity. Based on the Rants enviable metrics in terms of it strong readership profile in the key 18-44 demograghic plus its appeal to discerning readers in upscale income brackets and among the highly educated I envision tremendous growth ahead. Let's see know, when the rant reaches 100,000 unique viewers per month at an average value of $10 per viewer ... well then we will be seeing some serious value creation.

Posted by: Swammi in Solon at October 21, 2005 08:31 PM