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You want $1.3 Billion? Actually no sir, I don't.
Written By Scrivs on May. 29, 2008.
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I know this scenario sounds crazy, but this is exactly what Glam did this week because their investors feel they can get something more out of it. If you don't know about Glam don't be surprised because they target the female demographic and really nothing more than an ad network. They might advertise on some of your favorite female oriented sites.
They are more known for the outrageous claims by their CEO of how many people they have and how many pageviews they serve across their whole network of sites that they don't own. For a point of reference it is like us saying 9rules has over 30M pageviews a month across our network and act like those are our 30M pageviews.
Anyways Glam has taken on four rounds of funding I believe and each round gets more and more ridiculous so you can see why investors want a higher return, but come on man! $1.3 billion is nothing to sneeze at especially in today's economy. Also consider there is nothing stopping a competitor walking in and doing the exact same model and scooping up their sites.
I just don't get some companies at times. I know money isn't everything and if you really think you can get more then maybe you should stick it out, but that is a lot of greenbacks.
RightOn
Written May. 29, 2008 / Report /
If I KNEW I could get more hell yeah I'd turn it down... but honestly, if someone called me on my cell phone right now and said "I'm sitting here ready to deposit $1.3 BILLION into your bank account for you to hand over your blog" the SECOND that cleared my bank my blog would SO be theirs.
Scrivs
Written May. 29, 2008 / Report /
Even then for a company like this I don't know how much more you can stretch it out. I mean it is just an ad network essentially and not an intelligent one with crazy AI behind it.
JPhill
Written May. 29, 2008 / Report /
That's nuts. I would have sold the hell out Glam for that much. I find it hard to believe that they are worth that much though.
Mike
Written May. 30, 2008 / Report /
A bird in the hand is worth two in the bush. If you've got an offer for a billion and you "suspect" you can get more, or you "hope" you can get more, then you need to straighten yourself out and take what you've got.
One of my favorite sayings applies here:
Scrivs
Written May. 30, 2008 / Report /
Well according to Valleywag the owner was simply starting a rumor to try to get some bidding going on. This guy has been trying to scam since day 1 and if he pulls it off it will be a shame.
Ozone42
Written May. 30, 2008 / Report /
Some people need some serious reality checks. In no way is Glam worth that much to begin with. So the investors are crazy, and Glam's even more crazy for not jumping on that deal.
It seems lately people are doing valuations based on magical coins and pixie dust rather than what the company is actually doing. It's this kind of throwing money around that led to the dot com bubble.
I'm all for companies knowing what they're worth, holding out if they think they can do better (or even just not selling and running the company as they were.) This just seems stupid.
shadowsun7
Written May. 31, 2008 / Report /
I agree with Ozone. Lately it seems as if anything with a Web2.0 tag is being snapped up. I've no idea why - it doesn't actually seem as if millions are being made in the field ... so Flickr's a success - but what else?
Puzzling.
*update*: an even more puzzling thing is who the hell would want to pay 1.3 million for Glam?! Sheesh.