Report Values Rant at USD 20,000
Directors Jubilant at "One Hundred-Fold Return,"
But at Present Have No Plans to Sell
Analyst: "Blogs Are the New Tulips"
by HARRIS SCHWED
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